US launches strategic mineral reserve programme

The United States has launched a Strategic Critical Minerals Reserves Program allocating nearly 12-billion dollars to reduce its reliance on Chinese rare earth elements.

US President Donald Trump announced the start of "Project Vault" which would initially be funded by a 10-billion dollar loan from the U.S. Export-Import Bank and nearly 1.67 billion dollars in private capital.

"For years, American businesses have risked running out of critical minerals during market disruptions," said Trump. "Today, we're launching what will be known as Project Vault to ensure that American businesses and workers are never harmed by any shortage. We don't want to ever go through what we went through a year ago."

Trump described the plan as similar to the Strategic Oil Reserve over the years, designed to protect manufacturers from disruptions in the supply of key minerals.

The funds will be used to purchase and store key minerals, building up US mineral reserves for companies in sectors such as automobiles and technology.

Reuters, citing U.S. officials, reported that three commodity trading companies will manage the procurement of key minerals aiming to maintain reserves sufficient for 60 days of supply in an emergency.

A management structure will also be established with the Export-Import Bank of the United States likely to have a seat within it.

"The best part about it is that the American taxpayer will earn a return on financing the first ever strategic critical minerals reserve in history," said John Jovanovic, chairman of the Export-Import Bank.

US Treasury Secretary Scott Bessent said: "Economic security is national security and a country does not have sovereignty if we don't have control of our critical minerals, don't have control over our steel production and our industrial base.

"We are taking back our sovereignty and we are going to have this vault project a strategic mineral reserve and I can't tell you how innovative and exciting this is."

The Trump administration had earlier launched tariff wars against many countries.

China reacted by controlling the export of key minerals such as rare earth. Most of the world's rare earth comes from China.

Beijing's Foreign Ministry said today that China's position has remained the same - all sides are responsible for maintaining the steady and secure supply of minerals.