The United States will create a strategic reserve of critical minerals, US President Donald Trump announced.
“Today we are launching a project called Project Vault to ensure that American businesses and workers never suffer from a shortage of resources“, Trump said at an event at the White House.
The project will combine $1.67 billion in private capital with a $10 billion loan from the Export-Import Bank of the United States to purchase and store minerals for automakers, technology companies and others.
“Just as we have long had a strategic petroleum reserve and a national reserve of critical minerals for national defense, now we are creating this reserve for American industry so that we don't have any problems“, the Republican added, calling the idea “great“.
The US already has a strategic oil reserve and a national reserve of critical minerals for the defense industry, but no similar reserve for civilian needs.
Washington is seeking to sharply reduce its dependence on Chinese rare earths and other metals vital to the production of electric vehicles, high-tech weapons and many other industrial goods.
Trading companies Hartree Partners, Traxys North America and Mercuria Energy Group will manage the supply of raw materials for the stockpile, a Trump administration official familiar with the plan told Reuters.
Rare earth metals (REMs) are a group of 17 chemical elements that play a key role in a range of industries, from electronics to energy.
They include 17 elements, including scandium, yttrium and lanthanides, with up to 30 types classified as rare earths in various classifications, including lithium, titanium, beryllium and graphite.
Scandium is is considered the most expensive rare earth metal due to its unique properties and high demand in various industries. It is used in the aerospace industry, defense, and in the production of durable automobile bodies. This metal is also used to create solid fuel that powers powerful generators.