US Moves to Establish Strategic Rare Earths Reserve

The Trump administration has announced 'Project Vault', aiming to create a strategic reserve of rare earth elements. This $12 billion project is designed to counteract China's control over these crucial metals used in various technologies. A ministerial meeting on the initiative will take place, with Secretary of State Marco Rubio hosting.

The Trump administration unveiled plans to form a strategic reserve of rare earth elements valued at approximately USD 12 billion as part of 'Project Vault'. The initiative seeks to reduce U.S. dependence on China, which plays a dominant role in rare earths mining and processing. Initially, the project will rely on a USD 10 billion loan from the US Export-Import Bank alongside private capital to establish the stockpile.

China's restriction of rare earth exports during past trade negotiations highlighted its ability to leverage its hold over these essential materials. These elements are crucial for manufacturing various high-tech goods, including jet engines and electronics. The strategic reserve would function similarly to the national petroleum reserve, insulating American manufacturers from supply chain disruptions.

The State Department will host a ministerial meeting on the initiative, with Secretary of State Marco Rubio chairing the session. Vice President JD Vance is slated to deliver the keynote address. Representatives from multiple countries will discuss collaborating to ensure stable access to rare earths, potentially resulting in agreements to streamline supply chain logistics.