The US president is preparing an initiative to create a strategic reserve with an initial capital of $12 billion, according to a Bloomberg report, citing sources familiar with the matter.
The move would be Washington’s latest attempt to counter what policymakers see as price manipulation of lithium, nickel, rare earths and other critical minerals — needed for products from electric vehicles to advanced weapons — that has dogged U.S. mining companies for years.
What is Project Vault
Bloomberg reported that the venture, called Project Vault, would combine $1.67 billion in private funding with a $10 billion loan from the US Export-Import Bank to acquire and store the minerals for auto, technology and other industries.
According to the publication, more than a dozen companies are participating in the venture, including General Motors, Stellantis, Boeing, Corning, GE Vernova and Alphabet’s Google.
It is also reported that commodity trading firms Hartree Partners, Traxys North America and Mercuria Energy Group will manage the supply of raw materials for the stock.
The stockpile is expected to include both rare earths and critical minerals, as well as other strategically important items that are subject to sharp price fluctuations, Bloomberg adds.
Last month, a bipartisan group of US lawmakers filed a bill to create a $2.5 billion stockpile of critical minerals, aimed at stabilizing market prices and boosting domestic mining and processing.
