Trump announces $12 billion critical minerals stockpile to counter China

The Trump Administration announced the launch of acritical minerals stock pile of $12 billion to counter the presence of China in the market. The initiative involves the collection and storage of minerals, such as rare earths, gallium, cobalt, lithium and nickel, for U.S. manufacturers. These are used to manufacture batteries, semiconductors and smartphones, among other things.

As initially reported by Bloomberg News, the so-called Project Vaut, will combine private financing of $1.6 billion with a $10 billion loan from EXIM Bank to acquire and store minerals for automakers, technology companies and other manufacturers.

In turn, other commodity trading companies such as Hartree Partners, Traxys North Americaand Mercuria Energy Group will handle the procurement of minerals for the stockpile.

President Donald Trump made the official announcement during a press conference. He was accompanied by some cabinet members, including Treasury Secretary Scott Bessent, Energy Secretary Chris Wright, Commerce Secretary Howard Lutnick and Interior Secretary Doug Burgum.

"Over the past year, my administration has taken extraordinary steps to make sure the United States has all of the critical minerals and rare earths that we need. Today, we're building on these achievements with this vital new reserve," the president said.

"For years, American businesses have risked running out of critical minerals during market disruptions. Today, we're launching what will be known as Project Vault to ensure that American businesses and workers are never harmed by any shortage," the president added.

Among others, the goals of the project are to avail reserves during trade disruptions or stresses, protect critical industrial sectors from supply shocks and provide greater security for automakers, technology and defense manufacturers.

Burgum, who previously served as governor of North Dakota, celebrated the president's announcement, "You've done more in the last year for mining and minerals in our country perhaps than any President in history."

"We are taking back critical minerals. We are taking back mining. We're taking back the auto industry. You're gonna watch us take back pharmaceuticals. We're gonna take back semiconductors. None of this could possibly happen without [Trump's] leadership," Secretary Lutnick added for his part.