US President Donald Trump is poised to launch a strategic critical minerals reserve program with an initial $12 billion investment from the US Export-Import Bank (EXIM), according to a Trump administration official familiar with the plan.
The investment represents Washington’s latest attempt to counter what policymakers consider “Chinese manipulation” of prices for lithium, nickel, rare earths and other critical minerals – vital for items ranging from electric vehicles to high-tech weaponry – that has undermined American mining companies for years.
First reported by Bloomberg News, the project, called Project Vault, will combine private financing with a $10 billion loan from EXIM Bank to acquire and store the minerals for automakers, technology companies and other manufacturers.
Shares of rare earth and critical mineral companies such as MP Materials and USA Rare Earth Inc rose following news of the $12 billion critical mineral reserve initiative.
The EXIM Bank Board is expected to vote this Monday (2) to authorize the US$10 billion loan with a 15-year term.
Trump is also scheduled to meet Monday with General Motors CEO Mary Barra and mining billionaire Robert Friedland, who represent both producers and users of critical minerals, according to a second administration source familiar with the meeting.
The White House did not immediately respond to a request for comment.
The project has attracted interest from a wide range of American companies in the automotive and technology sectors.
Commodities trading firms Hartree Partners, Traxys North America and Mercuria Energy Group would manage the procurement of raw materials for the reserve, the source told Reuters.
The reserve is expected to include rare earths and critical minerals, as well as other strategically important elements subject to volatile prices.
Project Vault aims to assist the American auto industry by allowing companies to reduce risk on balance sheets, the official said, comparing the project’s logistics to a Costco membership that allows bulk purchases.
Another objective is to secure a reserve of minerals for 60 days of emergency use, the official added, noting that mineral storage is already underway.
An executive structure is expected to be established for the project and EXIM Bank will occupy a seat on the Board, according to the official.
Last month, a bipartisan group of US lawmakers introduced a bill to create a $2.5 billion reserve of critical minerals, a move aimed at stabilizing market prices and encouraging domestic mining and refining.
