Conflict of Interest? High-Ranking Pentagon Official Hires Personal Attorney for Critical Minerals Agreement

By Zachary Groz | August 21, 2026

A complex web of professional and personal relationships has emerged involving the Department of Defense (DOD) and a key figure in private equity. Alan Waldenberg, a partner at the law firm McDermott Will Schulte (formerly Schulte Roth Zabel LLP), has been serving as the legal representative for the Pentagon in a major minerals deal while simultaneously managing the private wealth of the agency's second-highest civilian leader.

The Strategic Investment: MP Materials

Last year, the DOD executed a landmark financial move to secure the U.S. supply chain for rare earth elements. The deal involved MP Materials, which operates the Mountain Pass facility in California—the sole rare earth mining site currently active in the United States.

Financial Breakdown

The investment structure was as follows:

• Equity Stake: $400 million
• Operational Loan: $150 million (intended for site expansion)

This agreement is part of a broader, aggressive strategy by the second Trump administration to dismantle China's monopoly on critical minerals. To date, the military has deployed a total of: $\text{Total Strategic Investments} > \$2,000,000,000$

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The Waldenberg Connection

The central figure in the July 2025 MP Materials transaction was Alan Waldenberg. His professional ties create a significant overlap between government interests and private wealth.

Waldenberg's Concurrent Roles

Ethics and Controversy

Stephen Feinberg, who holds immense power over DOD strategy and budgeting, reportedly selected Waldenberg for the DOD role based on a "high degree of trust" developed over decades.

When questioned about the potential for a conflict of interest, Waldenberg was dismissive:

"You’ve got to be kidding me," Waldenberg stated, maintaining that the interests of the DOD, Cerberus, and Feinberg were kept strictly partitioned.

However, ethics experts disagree. Richard Painter, a former chief White House ethics lawyer and former leader at Citizens for Responsibility and Ethics in Washington, argues that the arrangement is fundamentally flawed.

"If he has a personal relationship with Feinberg, Feinberg shouldn’t be making a decision about whether he’s hired by DOD... I can’t go into the government and recommend that the government retain my personal lawyer for something while he’s still my personal lawyer."

Ethics Checklist

• Discussed with DOD ethics staff (per Waldenberg)
• Independent vetting of counsel
• Recusal of Feinberg from hiring process $\rightarrow$ Completed Not Completed

Broader Implications

While there is no evidence that Cerberus Capital Management has a direct ownership stake in MP Materials, the firm is heavily invested in the same sector. Cerberus has provided backing to:

1. Torngat Metals (Quebec-based mining)
2. Eos Energy Enterprises (Battery storage manufacturing)

The Department of Defense has maintained that the arrangement is "aboveboard," citing the involvement of the OSC (Office of Strategic Capital).

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Note: Neither Cerberus nor MP Materials provided comments for this report.