Mentioned:
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America is going all in on building out a domestic supply chain for critical minerals. And they’re committing billions of dollars of government funding to do it.
What’s happening:
- President Donald Trump has signed a new executive order to create a new strategic critical minerals reserve known as Project Vault in the United States of America
By the numbers:
- Project Vault comes with a $10B USD funding commitment from the United States Export-Import Bank and roughly $2B USD in private capital from manufacturing companies and commodity trading houses
Why it matters:
- Project Vault is one of the single largest funding commitments ever from the American government to build a physical supply of critical minerals and rare earth elements
Going deeper:
- Project Vault will store critical minerals and rare earth elements in storage sites across the United States and will establish a new public-private partnership vehicle to borrow directly from the United States Export-Import Bank
- The United States federal government has been aggressively pouring capital into companies focused on scaling up domestic supply of critical minerals and rare earth elements lately, including just recently doing an equity deal with USA Rare Earth (NASDAQ: USAR) to accelerate the build out of their rare earth magnet production capabilities
