MP Materials Corp (NYSE:MP) shares are moving higher on Monday after reports that President Donald Trump aims to reduce China's dominance in rare earth materials through a $12 billion strategic stockpile of critical minerals.
The initiative, called Project Vault, will be funded through a $10 billion loan from the U.S. Export‑Import Bank along with $1.67 billion from institutional investors, Bloomberg disclosed.
The effort marks one of the largest U.S. commitments yet to secure supplies of minerals essential to industries like automotive, aerospace and energy. It also underscores Trump's push to reduce America's reliance on China, which currently controls most of the world's production and processing of rare earth elements.
China's grip on these materials has been a growing concern, and the worry grew last year when China tightened export controls.
Major Corporate Participation
More than a dozen major companies have already signed on to the project, including General Motors, Stellantis, Boeing, Corning, GE Vernova and Google. Three major commodities traders — Hartree Partners, Traxys North America and Mercuria Energy Group — will handle raw‑material purchases for the stockpile.
The Export‑Import Bank's board is expected to vote Monday on approving the record 15‑year loan, which would be more than twice the size of any previous deal by the bank.
How Project Vault Works
The program is designed to help manufacturers protect themselves from volatile swings in mineral prices without having to build and maintain their own stockpiles. Companies that commit to buying materials at a set price can submit a list of the minerals they need.
Project Vault will then purchase and store those materials. Manufacturers will pay a carrying cost tied to interest on the loan and storage expenses. They'll be able to draw from their allocated supply as needed, as long as they replenish what they use.
MP Price Action: MP Materials shares were up 3.39% at $60.76 at the time of publication on Monday, according to Benzinga Pro.
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