WASHINGTON: The United States is expected to launch a critical minerals stockpile with US$12 billion in initial funding, a White House official confirmed on Monday (Feb 2), as Washington seeks to lower reliance on China for rare earths and other resources.
The project, which was first reported on by Bloomberg, is anticipated to bring together some US$1.7 billion in private capital and a US$10 billion loan from the Export-Import Bank of the United States (EXIM).
This would go towards securing and storing the key minerals for businesses like automakers and tech companies – forming a stockpile for the US private sector – the White House official confirmed on condition of anonymity.
Rare-earth metals, which are crucial in the production of everything from smartphones to fighter jets and electric cars, have become a strategic bargaining chip since major producer China introduced restrictions on exports last year.
China’s dominance in the rare earths industry, from natural reserves and mining through processing and innovation, is the result of a decades-long drive.
This has now provided Beijing with important leverage in trade talks with US President Donald Trump’s administration.