Trump administration to launch 'Project Vault'-a $12 billion stockpile of rare earth elements

"The Trump administration plans to deploy nearly $12 billion to create a strategic reserve of rare earth elements, a stockpile that could counter China's ability to use its dominance of these hard to process metals as leverage in trade talks. The White House confirmed on Monday the start of "Project Vault," which would initially be funded by a $10 billion loan from the U.S. Export-Import Bank and nearly $1.67 billion in private capital."

"During trade talks last year, spurred by President Donald Trump's tariffs, the Chinese government restricted the exporting of rare earths that are needed for jet engines, radar systems, electric vehicles, laptops, and phones. China represents about 70% of the world's rare earths mining and 90% of global rare earths processing. That gave it a chokehold on the sector that has caused the U.S. to nurture alternative sources of the elements, creating a stockpile similar to the national reserve for petroleum."

The Trump administration plans to deploy nearly $12 billion to create a strategic reserve of rare earth elements aimed at countering China’s leverage over these minerals. Project Vault will be initially funded by a $10 billion loan from the U.S. Export-Import Bank plus roughly $1.67 billion in private capital. The reserve will store minerals used in jet engines, radar, electric vehicles, laptops, and phones to protect manufacturers from supply disruptions. China controls about 70% of mining and 90% of processing, prompting U.S. efforts to develop alternative sources and coordinate international supply chains.

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