Trump's $1.67 Billion Project to Reduce Dependence on China

Big Step from the Trump Administration: Project Vault

Former President Donald Trump is taking significant steps to reduce dependency on China. The project named "Project Vault" aims to combine $1.67 billion in private capital with a $10 billion credit from the U.S. Export-Import Bank (Ex-Im) to supply and store minerals for automotive manufacturers, technology firms, and other producers. According to Bloomberg News, while the details of this supply chain initiative are not yet finalized, it has reportedly garnered significant interest among investors.

Focus on Critical Minerals

The initiative will concentrate on minerals used in products like gallium and cobalt, similar to the U.S.'s existing strategic petroleum reserve. The stockpiles are expected to include rare earth elements and other strategic minerals subject to price fluctuations.

Strategic Move for the Automotive and Energy Sectors

The initiative presents a significant commitment to stockpiling critical minerals essential for the manufacturing economy, including the automotive, aerospace, and energy sectors. It is assessed that Trump strengthens his efforts to reduce dependence on critical mineral supplies from China with this project.

Major Companies Involved in the Project

Major firms participating in the project include General Motors, Stellantis, Boeing, Corning, GE Vernova, and Google. Additionally, Hartree Partners, Traxys North America LLC, and Mercuria Energy Group have signed agreements to secure the procurement of these raw materials.

International Collaborations and Future Plans

The Ex-Im Management Board will vote to approve a record 15-year loan. The U.S. currently operates a national stock of critical minerals, but this storage has yet to show presence for civilian needs. The Trump administration plans to encourage more countries to engage in collaborations in this field by signing cooperation agreements with countries such as Australia, Japan, and Malaysia.

With this project, the efforts to mitigate the risks in the U.S. mineral supply chain have accelerated following the tightening of China's mineral export controls.