Trump Launches New Mineral Project to Reduce Dependency on China

Trump Launches Strategic Mineral Stock Program to Reduce Dependency on China

United States President Trump is set to take a significant step to reduce the country's dependency on China by initiating a strategic critical minerals stock program with an initial capital of $12 billion. This initiative will be carried out under the name Project Vault and is notable for its involvement of private sector funds and credit opportunities.

Funding Structure of the Project

As part of Trump's plan, a $1.67 billion private sector fund will be combined with a $10 billion loan from the Export-Import Bank of the United States, to be used for mineral purchasing and stockpiling processes. This funding aims to secure the minerals required by automotive, technology, and other manufacturers.

Surge in Rare Earth Element Stocks

Following the announcement of the project, significant increases have been observed in the stocks of rare earth elements. Similar to the U.S. Strategic Petroleum Reserve, this initiative will focus on minerals such as gallium and cobalt instead of crude oil.

Participating Companies and Future of the Project

The initiative involves major players such as General Motors (GM), Stellantis (STLA), Boeing (BA), Corning (GLW), and GE Vernova (GEV). Additionally, trading companies like Hartree Partners, Traxys North America, and Mercuria Energy Group will also play a role in managing raw material supply.

It is reported that the board of the Export-Import Bank will hold a vote today to approve the largest loan in the bank's history. This record 15-year loan could play a key role in addressing America's strategic mineral needs.