US President Donald Trump has unveiled a $12 billion plan to create a critical mineral reserve, dubbed "Project Vault," aimed at countering China's dominance in the rare earths market. The initiative is seen as an effort to shield American businesses and workers from potential supply chain disruptions.
The project's funding will come from a $10 billion loan from the US Export-Import Bank and $1.67 billion in private capital. This reserve of critical minerals, including those used in vehicle manufacturing, electronics, and other goods, is expected to provide much-needed security against potential shortages caused by China's control over 70% of global rare earths mining and 90% of processing.
The move comes after a contentious trade standoff between the US and China last year, when Beijing restricted the export of crucial rare earth elements. Trump acknowledged that experience, stating that "we don't want to ever go through what we went through a year ago" but expressed confidence that his administration's efforts would ultimately succeed.
Critically, the reserve is expected to gain significant support from other nations, including European, African, and Asian countries, which will attend a ministerial meeting on critical minerals. The event is also slated to include bilateral agreements aimed at improving supply chain logistics and securing access to rare earths.
The US government has previously invested in rare earths mining projects, with stakes in companies like MP Materials and Vulcan Elements. Project Vault's funding terms include a 15-year repayment period for the loan, with expectations of generating profits from its operation.
The project's funding will come from a $10 billion loan from the US Export-Import Bank and $1.67 billion in private capital. This reserve of critical minerals, including those used in vehicle manufacturing, electronics, and other goods, is expected to provide much-needed security against potential shortages caused by China's control over 70% of global rare earths mining and 90% of processing.
The move comes after a contentious trade standoff between the US and China last year, when Beijing restricted the export of crucial rare earth elements. Trump acknowledged that experience, stating that "we don't want to ever go through what we went through a year ago" but expressed confidence that his administration's efforts would ultimately succeed.
Critically, the reserve is expected to gain significant support from other nations, including European, African, and Asian countries, which will attend a ministerial meeting on critical minerals. The event is also slated to include bilateral agreements aimed at improving supply chain logistics and securing access to rare earths.
The US government has previously invested in rare earths mining projects, with stakes in companies like MP Materials and Vulcan Elements. Project Vault's funding terms include a 15-year repayment period for the loan, with expectations of generating profits from its operation.
. I mean, you can't put a price on national security right? The whole thing about China controlling 70% of global rare earths mining and 90% of processing is like, super concerning 
. We've seen how volatile trade relationships can get, especially when it comes to crucial resources like these. It's smart thinking to diversify and create a backup plan, especially with the private sector on board 
. I'm curious to see how this project unfolds and what kind of impact it'll have on global supply chains 
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Trump is trying to flex his economic muscles by creating this super important mineral reserve 
dubbed "Project Vault". Like, China's got all the rare earths and it's causing some major headaches for US businesses and workers... but now we're gonna make our own 
! The thing is tho, how much of this is just about showing off to China? I mean, is it really gonna be enough to make a difference? The $12 billion price tag is huge 
. But what's the real catch here? Who's really backing this project and how much do we know about it? 
. I mean, think about it, China's got such a stranglehold on rare earths, and now the US is trying to create its own safety net? It's like, they're protecting their own interests and making sure those American businesses stay competitive 
. The fact that other countries are getting involved is a big deal too, I think we're gonna see some serious cooperation on this front 
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. China's got everyone in a chokehold right now, and we can't afford to be at their mercy 
! The ministerial meeting sounds like a great idea - we need more global cooperation to tackle these kinds of supply chain disruptions 
. And let's be real, who wouldn't want to get in on some rare earth profits? 
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. It's like we're saying "hey guys, we know you're struggling to make ends meet, so here's some cash to save the day". And don't even get me started on the private capital - like who exactly gets to decide how our money is used? 
. What's next, are we gonna start giving out IOUs to everyone because "we don't want to go through what we went through a year ago"? 
gotta stay ahead of the game and not rely on others 
and having a critical mineral reserve like Project Vault sounds like a solid plan 
It's also kinda smart that other countries are getting in on this too, they don't want to be held hostage by China either. I wonder how long it'll take for the US to actually get its hands on some of these minerals though...
$12 billion? that's like asking if you can put a big sticker on your forehead that says "we're desperate" 
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, and I'm excited to see how this project unfolds.
do you guys have any experience with rare earths or is it more of a "leave it to the experts" kinda deal?
this is so deep man China controlling all those rare earth minerals is crazy. It's like they're holding America's future in their hands. The US gotta take control of that ASAP