President Donald Trump is reportedly set to unveil a critical-minerals stockpile, under the name Project Vault, with a $12 billion seed money. It is likely to include $1.67 billion from private capital alongside a $10 billion loan from the U.S. Export-Import Bank.
Strategic Mineral Stockpile To Reduce China Reliance
Project Vault is aimed at protecting U.S. tech firms, automakers and other manufacturers from supply shock and reducing dependence on Chinese rare earth and minerals, reported Bloomberg on Monday.
Designed on the lines of the existing U.S. emergency oil stockpile, this initiative would focus on key minerals like cobalt and gallium, which are used in jet engines, batteries and other critical products such as Apple (NASDAQ:AAPL) iPhones. While the nation already has a critical mineral stockpile for emergency defense requirements, this project would particularly address civilian needs.
General Motors (NYSE:GM), Alphabet‘s Google (NASDAQ:GOOGL) (NASDAQ:GOOG), Boeing Inc. (NYSE:BA), Stellantis NV (NYSE:STLA) and Corning Inc. (NYSE:GLW) are some of the leading companies that have signed up to participate in raw material handling to build the stockpile.
The Ex-Im Bank is likely to vote on Monday to authorize the 15-year loan, while Trump is set to meet General Motors CEO Mary Barra and billionaire mining financier Robert Friedland.
Federal Push For Rare Earth Supply Expansion
The move comes days after the Trump Administration invested $1.6 billion in USA Rare Earth Inc. (NASDAQ:USAR). In July, MP Materials (NYSE:MP) announced a public-private partnership with the U.S. Department of War, while similar deals have been made with Lithium Americas Corp. (NYSE:LAC) and Trilogy Metals Inc. (NYSE:TMQ).
In November, American Resources Corp. (NASDAQ:AREC), through two private entities, ReElement Technologies and Vulcan Elements, entered into a $1.4 billion deal to build a domestic rare earth magnet supply chain.
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