In a strategic move aimed at reshaping the global resource landscape and bolstering national economic security, US President Donald Trump is preparing to launch a massive project to establish a strategic reserve of critical minerals. With an initial estimated cost of $12 billion, this ambitious project is seen as a crucial measure to protect major US companies from the volatile global supply chains and to reduce over-reliance on China in this vital sector.
Details of financing and public-private partnerships
Senior US administration officials revealed to Bloomberg the project's financial structure, which will be secured through a combination of private investment and government support. The plan includes a $1.67 billion private equity injection, backed by a massive $10 billion loan from the US Export-Import Bank (EXIM Bank). The bank's board of directors is scheduled to vote later today on approving the 15-year loan, reflecting a long-term commitment to securing resources.
Target minerals and industrial importance
Officials explained that the strategic stockpile will not be limited to a single type, but will include a wide range of vital metals and rare earth elements. Among the most prominent of these are gallium and cobalt, indispensable materials in advanced technology and defense industries. These metals are directly used in the manufacture of consumer products such as iPhones, batteries for electric vehicles, and critical components in jet engines and military guidance systems.
The context of the trade conflict and reducing dependence on China
This move comes at a time of escalating geopolitical and trade tensions between the United States and China. Beijing currently controls the lion's share of global rare earth mineral processing and refining, giving it significant leverage in trade disputes. The new US project aims to break this monopoly and ensure the continuity of American industrial production even in the event of geopolitical instability or export restrictions imposed by other countries.
Corporate alliance and securing the future
More than 12 major companies are participating in this vital project so far, highlighting the private sector's interest in securing its raw material needs from the volatility of the open market. Economic experts believe that establishing this stockpile represents an "insurance policy" for the American economy, guaranteeing price stability and the availability of raw materials necessary for the Fourth Industrial Revolution and the transition to clean energy.
