On February 2, President Donald Trump announced the launch of a strategic stockpile of critical minerals, backed by an initial $10 billion investment loan from the U.S. Export-Import Bank (EXIM).
Speaking at an event in the Oval Office, Trump stressed that U.S. companies have faced the risk of running short of critical minerals during periods of market disruption. Citing Reuters, the president said: “Today, we are launching Project Vault to ensure that American businesses and workers are never harmed by any shortages.”
The Trump administration has been working to counter what U.S. policymakers view as China’s manipulation of prices for critical minerals such as lithium, nickel, and rare earths—materials that are essential for manufacturing electric vehicles, advanced weapons systems, and a wide range of other industrial goods.
China’s dominant position in these markets has posed challenges for U.S. mining companies for years. To address this, Project Vault will combine $2 billion in private capital with a $10 billion loan from EXIM to purchase and stockpile minerals for U.S. automakers, technology companies, and other manufacturers, according to Trump. EXIM said it approved the loan on February 2.
Shares of rare earth and critical mineral companies, including MP Materials and USA Rare Earth Inc., rose following reports that the $12 billion initiative was about to be announced.
General Motors CEO Mary Barra and mining billionaire Robert Friedland—representing mineral end-users and critical mineral producers, respectively—attended the Oval Office event.
The project has attracted interest from a wide range of U.S. automotive and technology companies. Commodity trading firms such as Hartree Partners, Traxys North America, and Mercuria Energy Group will manage the procurement of raw materials for the stockpile, according to a Trump administration official.
According to the official, Project Vault is designed to support the U.S. auto industry while allowing companies to reduce balance-sheet risk by enabling bulk purchases of critical minerals.
Another objective of Project Vault is to maintain a 60-day supply of minerals for emergency use, the source said, adding that stockpiling has already begun.
An operating structure is expected to be established for the project, and EXIM is likely to hold a seat on the board.
Last month, a bipartisan group of U.S. lawmakers introduced legislation to create a $2.5 billion critical minerals stockpile aimed at stabilizing market prices and encouraging domestic mining and processing.
Leave a Reply