US President Unveils $12 Billion Stockpile of Critical Minerals to Counter China's Dominance in Rare Earth Market
In a move that appears aimed at countering China's stranglehold on the global rare earth market, US President Donald Trump has announced the creation of Project Vault, a stockpile worth nearly $12 billion. The reserve will be used to shield American businesses and workers from supply chain disruptions caused by shortages of critical minerals.
The plan is similar to the Strategic Petroleum Reserve (SPR), created in the 1970s to mitigate the impact of an Arab oil embargo. Trump stated that Project Vault will ensure "American businesses and workers are never harmed" by such a shortage, echoing his concerns about the effects of last year's trade talks with China.
During those talks, China restricted the export of rare earth elements, which are essential for various high-tech products including jet engines, radar systems, electric vehicles, laptops, and smartphones. Trump acknowledged that the US had faced difficulties in securing these critical minerals, but expressed confidence that the new reserve would alleviate such challenges.
China controls approximately 70% of global rare earth mining and 90% of global processing, giving it significant leverage over the market. The US has been seeking alternative sources for these elements, leading to investments in companies like MP Materials and Vulcan Elements, among others.
The project will be initially funded by a $10 billion loan from the US Export-Import Bank and $1.67 billion in private capital. The reserve is expected to provide significant relief to manufacturers of vehicles, electronics, and other goods facing supply chain disruptions.
A ministerial meeting on critical minerals will take place at the state department next week, with officials from several dozen European, African, and Asian nations attending. The gathering aims to create momentum for collaboration among participants to secure access to rare earths.
The US government-backed loan for Project Vault has a repayment period of 15 years, reflecting confidence in the reserve's potential to generate returns for investors. With its unveiling, Trump appears to be signaling that the US is determined to bolster its supply chain resilience and mitigate the risks associated with China's dominance in the rare earth market.
In a move that appears aimed at countering China's stranglehold on the global rare earth market, US President Donald Trump has announced the creation of Project Vault, a stockpile worth nearly $12 billion. The reserve will be used to shield American businesses and workers from supply chain disruptions caused by shortages of critical minerals.
The plan is similar to the Strategic Petroleum Reserve (SPR), created in the 1970s to mitigate the impact of an Arab oil embargo. Trump stated that Project Vault will ensure "American businesses and workers are never harmed" by such a shortage, echoing his concerns about the effects of last year's trade talks with China.
During those talks, China restricted the export of rare earth elements, which are essential for various high-tech products including jet engines, radar systems, electric vehicles, laptops, and smartphones. Trump acknowledged that the US had faced difficulties in securing these critical minerals, but expressed confidence that the new reserve would alleviate such challenges.
China controls approximately 70% of global rare earth mining and 90% of global processing, giving it significant leverage over the market. The US has been seeking alternative sources for these elements, leading to investments in companies like MP Materials and Vulcan Elements, among others.
The project will be initially funded by a $10 billion loan from the US Export-Import Bank and $1.67 billion in private capital. The reserve is expected to provide significant relief to manufacturers of vehicles, electronics, and other goods facing supply chain disruptions.
A ministerial meeting on critical minerals will take place at the state department next week, with officials from several dozen European, African, and Asian nations attending. The gathering aims to create momentum for collaboration among participants to secure access to rare earths.
The US government-backed loan for Project Vault has a repayment period of 15 years, reflecting confidence in the reserve's potential to generate returns for investors. With its unveiling, Trump appears to be signaling that the US is determined to bolster its supply chain resilience and mitigate the risks associated with China's dominance in the rare earth market.
like, I get why they wanna do it, but $12 billion is just crazy talk! And what's with the 15-year repayment plan? Isn't that gonna be way too long to recoup that kind of investment? 
they're basically cornering the market on this stuff. So, is this just a PR move or what? Are we really confident that Project Vault is gonna make a huge difference in the long run?
like, investing in other countries for those minerals might not be such a bad idea. And what about the environmental impact of extracting and processing these elements? That's some heavy stuff...
Or maybe it's just a bunch of hubris? 
Either way, I'm intrigued to see how this plays out!
It seems like a classic case of playing catch-up with China, and I'm not convinced that this will be enough to level the playing field. 
Project Vault is gonna save American businesses and workers from getting screwed over by supply chain disruptions 
. I mean, can you imagine if our laptops and smartphones couldn't be made without those rare earth elements? 
. And let's be real, it's about time we started standing up to China's stranglehold on the global market 
. They're always talking about innovation and progress, but they need these rare earth elements to make it happen 
. Now, with Project Vault, they can finally focus on making the best products without worrying about supply chain issues 
.
Let's keep supporting our US companies and innovators, 'kay? 
we'll just have to wait and see how it all plays out 
but for real though china being the only one controlling 70% of global rare earth mining is like, crazy talk. i mean who needs that kind of power? 
. I guess times have changed and so have the worries 
. I'm not sure if this plan is gonna work or not, but it's definitely an interesting move by Trump 
& now trump's all like "we're gonna counter dat" lol but isnt it kinda late 2 the party already? 
. It's about time the US gets its act together when it comes to securing its own supply chain 
... think about it if US can control rares earths then they can control tech industry 
and that would be massive advantage in global politics 
... I'm all for it though, more supply chain security means less anxiety for American workers 
they're trying to secure their tech industry future by having a safety net. But I'm not sure if it's going to work... 
right now we don't know what they're looking at 
I don't blame trump for wanting to create this $12 billion stockpile thingy 
. so i guess creating this reserve is like a way for us to say "hey china, we're not gonna get all messed up because of you"