Trump unveils $12bn critical minerals stockpile scheme in apparent move to counter China’s dominance | Donald Trump

Donald Trump has announced the creation of a critical mineral reserve worth nearly $12 billion, a stockpile that could thwart China’s ability to use its dominance over hard-to-process metals as leverage in trade negotiations.

“Today, we are launching what will be known as Project Vault to ensure that American businesses and workers are never harmed by any shortage,” Trump said at the White House on Monday.

He compared it to the Strategic Petroleum Reserve (SPR), created in the 1970s when an Arab oil embargo led to a disruptive gas shortage.

US Interior Secretary Doug Burgum said 11 additional countries would be announced for the initiative later this week.

The project will initially be financed by a $10 billion loan from the U.S. Export-Import Bank and nearly $1.67 billion in private capital. Minerals kept in the reserve would help protect manufacturers of vehicles, electronics and other goods from any supply chain disruptions.

During trade talks last year, spurred by Trump’s tariffs, China restricted the export of rare earths needed for aircraft engines, radar systems, electric vehicles, laptops and phones.

“We never want to relive what we went through a year ago,” Trump said, apparently referring to the confrontation with China, adding that in the end, “it worked.” The president said he expected the government to make a profit on the loan used to start the reserve.

China controls approximately 70% of the world’s rare earth mining and 90% of global rare earth processing. This gave it a stranglehold on the sector, which pushed the United States to develop alternative sources of the elements, creating a stockpile similar to the national oil reserve.

The strategic reserve is expected to be the highlight of a ministerial meeting on critical minerals that Secretary of State Marco Rubio will host Wednesday at the State Department.

Vice President JD Vance plans to deliver a speech at the meeting, which officials from several dozen European, African and Asian countries plan to attend. The meeting is also expected to include the signing of several bilateral agreements aimed at improving and coordinating supply chain logistics.

The State Department said in its statement announcing the meeting that the gathering will “build momentum for collaboration” among participants to ensure access to rare earths.

The government-guaranteed loan financing the reserve would have a duration of 15 years. The US government has already taken stakes in rare earth mining company MP Materials and has also financially supported companies Vulcan Elements and USA Rare Earth.

Trump announced the reservation with General Motors CEO Mary Barra and mining billionaire Robert Friedland in the Oval Office, along with other members of his administration and congressional leaders.

With Associated Press and Reuters