WASHINGTON (AP).— President Donald Trump’s administration plans to invest nearly $12 billion in creating a strategic reserve of rare earth elements, with the aim of countering China’s ability to use its dominance of these difficult-to-process metals as a pressure tool in trade negotiations.
The White House confirmed the start of the so-called “Project Vault”, which in the first stage would be financed through a loan of 10 billion dollars from the Export-Import Bank of the United States, in addition to approximately 1.67 billion dollars in private capital.
The minerals that will make up the strategic reserve will serve to protect manufacturers of automobiles, electronic products and other goods against possible interruptions in the supply chain, considered a growing risk for key sectors of the US economy.
During trade negotiations last year, stemming from Trump’s imposition of tariffs, the Chinese government restricted the export of rare earths used in jet engines, radar systems, electric vehicles, laptops and mobile phones.
China concentrates 70% of the world’s rare earth mining and close to 90% of global processing, which gives it predominant control over the sector and has led the United States to promote alternative sources of elements, under a scheme similar to that of the oil reserve.
The creation of the reserve is expected to be one of the central topics of a ministerial meeting on critical minerals that Secretary of State Marco Rubio will lead Wednesday at the State Department.
Vice President JD Vance will deliver the keynote address at the meeting, which will be attended by officials from several dozen countries in Europe, Africa and Asia. At the meeting, it is also expected to finalize various bilateral agreements to strengthen and coordinate supply chain logistics.
In a statement, the State Department noted that the meeting “will create momentum for collaboration” among participating countries, in order to ensure access to rare earths.
The government loan intended to finance the reserve will have a term of 15 years. Previously, the United States government has taken stakes in the mining company MP Materials and provided financial support to the companies Vulcan Elements and USA Rare Earth.
New impulse They seek to improve their reserves
The United States promotes rare earth reserves to reduce Chinese dependence.
“Vault” Project
The initiative seeks to stockpile critical minerals through public and private financing, creating a strategic backstop similar to oil, capable of cushioning economic impacts from trade tensions, restrictions and prolonged disruptions in global supply chains.
Chinese dominance
China concentrates the majority of global rare earth mining and processing, using that position as a geopolitical tool, which has prompted the United States to diversify suppliers, strengthen international alliances and reduce strategic vulnerabilities in key technological sectors.
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