Trump Launches $12 Billion 'Project Vault' for Critical Minerals amid China Trade Tensions
The U.S. government has launched 'Project Vault', a $12 billion initiative to acquire and store critical minerals, including rare earth metals, amid escalating trade tensions with China. Funded by a mix of government loans and private capital, the program involves major companies like General Motors and Boeing, and aims to stabilize supply and prices following market fluctuations. Agreements with Australia, Japan, and Malaysia are part of efforts to reduce reliance on China's dominance in the rare earth sector.
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The U.S. government has initiated 'Project Vault', a $12 billion program aimed at acquiring and storing critical minerals, including rare earth metals essential for industries such as automotive and technology. The funding comprises $10 billion from a 15-year loan from the Export-Import Bank and $1.67 billion from private capital.
Key participants include General Motors, Stellantis NV, Boeing, Google, and Corning, alongside buyers Hartree Partners, Traxys North America, and Mercuria Energy. The U.S. seeks to stabilize supply and prices amidst rising market fluctuations, particularly following significant price increases in nickel after Russia's invasion of Ukraine.
Agreements have been made with Australia, Japan, and Malaysia, with further negotiations expected at a critical minerals summit in Washington on February 4. The initiative is part of a broader strategy to counter China's dominance in the rare earth sector, where it controls about 90% of processing.
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