Trump Unveils $12B Mineral Stockpile Plan to Counter China’s Influence

TLDR

• The United States is creating a $12 billion mineral stockpile named Project Vault to support civilian industries.
• The plan includes $1.67 billion in private investments and a $10 billion loan from the U.S. Export-Import Bank.
• This is the first time the U.S. is building a mineral reserve specifically for commercial companies.
• Companies like GM, Google, Boeing, Stellantis, and GE Vernova are already participating in the program.
• The stockpile will contain critical minerals and rare earths used in batteries, electronics, and manufacturing.

The U.S. government is creating a new $12 billion stockpile of critical minerals to protect companies from supply shocks, combining $1.67 billion in private funding with a $10 billion loan backed by the U.S. Export-Import Bank, which is voting on the deal Monday.

Civilian Stockpile Targets Supply Security

The initiative, called Project Vault, will support U.S. companies that rely on rare earths and key minerals. These materials are essential for products such as phones, electric vehicles, and batteries. Until now, the U.S. has only maintained mineral reserves for defense purposes. This program introduces a civilian-focused stockpile.

Officials confirmed over a dozen companies are involved, including GM, Boeing, Stellantis, Corning, GE Vernova, and Google. These firms use critical materials in industrial manufacturing. Trading firms Mercuria, Hartree, and Traxys are managing procurement and logistics. They will oversee material purchases under government oversight. The stockpile aims to stabilize market access. It acts as a safeguard if China restricts exports again.

Trump Meets Industry Leaders to Launch Project Vault

Trump will meet Monday with GM CEO Mary Barra and mining billionaire Robert Friedland. Both represent key sectors of the supply chain. One is from manufacturing and the other from extraction. They highlight the dual role of suppliers and end-users in the project.

“This gives companies protection from wild price swings,” an official stated. “They don’t need to panic if something gets cut off.” The Export-Import Bank’s board is expected to approve the $10 billion loan this week. It is the largest loan ever proposed by the bank.

The loan will support long-term material acquisition and storage. The agreement spans 15 years. Project Vault also has international components. Agreements have already been signed with Japan, Australia, and Malaysia. Officials are preparing for a major meeting in Washington. They plan to add more countries to strengthen the mineral supply network.

Companies Can Access and Refill Strategic Stash

Participating companies will pay upfront to reserve materials. They can request access during shortages. In return, they agree to replace what they use. This maintains the reserve for future needs. If disruptions occur, they receive their reserved volume. This approach offers pricing stability and predictable access.

If a firm agrees to buy 20 tons of cobalt, it must repurchase the same amount later. This mechanism ensures pricing consistency. Officials explained the program is oversubscribed. Companies committed early due to government guarantees and credible buyers. Share prices for U.S. mining firms rose early Monday. USA Rare Earth and NioCorp saw gains before markets opened.

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