US plans multibillion-dollar minerals reserve to blunt China’s dominance

United States President Donald Trump is preparing to launch a strategic stockpile of critical minerals backed by $12 billion in initial funding, according to a Bloomberg report citing people familiar with the plan.

The initiative is aimed at countering what US policymakers see as China’s long-standing influence over the pricing of key minerals such as lithium, nickel and rare earth elements, which are essential for industries ranging from electric vehicles to advanced weapons systems. US mining firms have long argued that Beijing’s pricing power has undercut their ability to compete.

The project, known as Project Vault, is expected to combine $1.67 billion in private investment with a $10 billion loan from the US Export-Import Bank. The funds would be used to purchase and stockpile minerals for use by automakers, technology companies and other manufacturers, Bloomberg reported.

Reuters was not able to independently verify the report, and the White House did not immediately respond to a request for comment.

More than a dozen major companies are said to be involved in the venture, including General Motors, Stellantis, Boeing, Corning, GE Vernova and Google. Commodities trading firms Hartree Partners, Traxys North America and Mercuria Energy Group are expected to handle the procurement of raw materials for the stockpile.

The reserve would include rare earths and other strategically important minerals that are prone to sharp price swings, the report said.

The move follows growing political momentum in Washington to secure mineral supply chains. Last month, lawmakers from both parties introduced legislation proposing a separate $2.5 billion critical minerals stockpile designed to stabilise prices and encourage domestic mining and processing.

Bloomberg reported that the Export-Import Bank’s board is due to vote later on Monday on approving the 15-year loan, which would be more than twice the size of the bank’s next-largest financing deal.