President Trump is launching a critical minerals stockpile Monday to reduce U.S. reliance on China for supplies of cobalt, lithium and other precious materials that major companies need.
The project will be called Project Vault and will start with $2 billion in private seed money, paired with a $10 billion loan from the Export-Import Bank, according to Bloomberg News.
Major companies, including Google, General Motors and Boeing, are expected to join the venture, and the Ex-Im Bank will vote whether to approve the loan on Monday, the report said.
The idea is to ensure a steady stream of minerals for defense companies, automakers and other firms.
Gallium, for instance, is used in semiconductors, modern fighter jets and electric vehicles.
The effort is expected to include critical minerals and elements known as rare earths. A 15-item row of the periodic table known as the lanthanide series, plus yttrium and scandium, form the roster of rare earth elements.
A standoff with China last year underscored their importance to modern technology.
Beijing suddenly cut off the supply of rare earths to the U.S. and other countries, prompting a flurry of trade talks in which China resumed shipments in exchange for concessions from the U.S. on semiconductors and foreign student visas.
The Trump administration is looking for alternative sources, including rich deposits of rare earths in Mountain Pass, California. Mr. Trump also inked an $8.5 billion minerals-sharing agreement with Australia.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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