US Launches $12 Billion Plan to Stockpile Critical Minerals

The United States has unveiled a new initiative to secure supplies of critical minerals, as policymakers seek to reduce supply risks for domestic manufacturers and address vulnerabilities exposed during market disruptions, as per Reuters. 

Funding Structure and Project Design 

President Donald Trump announced the launch of Project Vault during an Oval Office event on Monday. The initiative will combine $10 billion in seed funding from the U.S. Export-Import Bank with $2 billion in private capital, taking the total size of the programme to $12 billion.  

The EXIM Bank confirmed that it approved the loan on Monday. The stockpile will acquire minerals for use by automakers, technology firms and other manufacturers.  

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

Supply Security and Operational Framework 

The project is aimed at countering what US policymakers see as price manipulation in minerals such as lithium, nickel and rare earths, which are essential for electric vehicles, advanced weaponry and a wide range of manufactured goods.  

Procurement of raw materials for the stockpile will be managed by commodities trading firms Hartree Partners, Traxys North America and Mercuria Energy Group, according to a Trump administration official familiar with the plan.  

Project Vault is designed to help the US auto industry while allowing participating companies to keep related supply risks off their balance sheets. The project also targets maintaining a 60-day emergency supply of critical minerals, with stockpiling already under way. 

Read More: India-US Trade Deal Sparks Historic Market Rally, Adds ₹20 Lakh Crore in Wealth! 

Conclusion 

With Project Vault, the US has outlined a large-scale approach to securing critical mineral supplies, combining public funding, private capital and commercial procurement to strengthen supply chains for key manufacturing sectors. 

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