Strategic Stockpile Aimed at Supply Security
President Donald Trump is set to launch a strategic stockpile of critical minerals with $12 billion in initial funding, according to an administration official familiar with the plan.
The initiative is designed to support US manufacturers by ensuring reliable access to minerals considered essential for industrial production and national security.
Financing and Structure of the Plan
The project, referred to as Project Vault, will combine private investment with a $10 billion loan from the US Export-Import Bank. The bank’s board is scheduled to vote on authorizing the 15-year loan.
Under the plan, the minerals would be purchased and held for use by automakers, technology firms, and other manufacturers.
Minerals Included in the Stockpile
The stockpile is expected to include:
- Rare earth elements
- Lithium
- Nickel
- Other critical minerals subject to volatile pricing
These materials are widely used in electric vehicles, advanced manufacturing, and defense-related technologies.
Administration’s Rationale
Administration officials described the move as an effort to counter what policymakers view as long-standing price manipulation by China in global critical minerals markets.
Officials said these market conditions have made it difficult for US mining companies to compete and invest over the past several years.
Industry and Market Reaction
Shares of US-based rare earth and critical minerals companies rose following reports of the initiative.
The project has drawn interest from a range of American automotive and technology firms, according to officials familiar with the discussions.
Procurement and Management
Several commodities trading firms are expected to manage procurement for the stockpile, including:
- Hartree Partners
- Traxys North America
- Mercuria Energy Group
The stockpile is intended to operate in a way that keeps inventory risk off corporate balance sheets while allowing companies access to large-volume purchases.
Emergency Supply and Oversight
Officials said the program aims to maintain up to a 60-day supply of critical minerals for emergency use.
An executive structure is expected to be created for the project, with the Export-Import Bank likely holding a board seat.
Meetings With Industry Leaders
Trump is expected to meet with leaders from both the supply and demand sides of the minerals market, including executives from the automotive sector and mining industry.
The White House did not immediately comment publicly on the plan.
Legislative Context
The announcement follows recent bipartisan legislation introduced in Congress proposing a separate $2.5 billion critical minerals stockpile.
That proposal was described as an effort to stabilize prices and encourage domestic mining and refining capacity.
Related Coverage
Idaho News – https://idahonews.co/idaho-news-3/
National News – https://idahonews.co/national-news/
Global News – https://idahonews.co/global-news/
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