Photo: Alamy
President Donald Trump is preparing to roll out a strategic stockpile of critical minerals backed by $12 billion in initial funding, according to a Bloomberg News report citing people familiar with the plan.
The initiative is described as the Trump administration’s latest effort to push back against what U.S. officials view as China’s long-standing manipulation of prices for lithium, nickel, rare earths and other essential minerals. These materials are considered indispensable for industries ranging from electric vehicle manufacturing to advanced weapons systems, yet American producers have struggled for years to compete with Chinese dominance in the sector.
The project, known as Project Vault, would combine $1.67 billion in private investment with a $10 billion loan from the U.S. Export-Import Bank. The funds would be used to purchase and store minerals for automakers, technology firms and other manufacturers, the report said.
China has previously restricted exports of rare earth minerals, raising concerns for the U.S. economy and national security.
“We don’t want to ever go through what we went through a year ago,” President Trump said about China.
More than a dozen major companies are expected to participate, including General Motors, Stellantis, Boeing, Corning, GE Vernova and Google, according to Bloomberg.
Procurement of raw materials would be handled by commodities trading firms Hartree Partners, Traxys North America and Mercuria Energy Group.
The stockpile is expected to include rare earth elements, critical minerals and other strategically important materials that are subject to sharp price swings.
The report also notes that momentum has been building on Capitol Hill. Last month, a bipartisan group of lawmakers introduced legislation to establish a separate $2.5 billion critical minerals stockpile to stabilize prices and boost domestic mining and refining.
Bloomberg added that the Ex-Im Bank’s board is scheduled to vote later Monday on authorizing the 15-year loan for Project Vault. If approved, it would become the largest financing deal in the bank’s history, more than twice the size of its next biggest transaction.