Trump looks to secure critical minerals through first-of-its-kind stockpile

President Trump launched a critical minerals stockpile on Monday to reduce U.S. reliance on China for supplies of cobalt, lithium and other precious materials that major companies need.

The program is called Project Vault and will start with $2 billion in private seed money, paired with a $10 billion loan from the Export-Import Bank. Major companies, including Google, General Motors and Boeing, are expected to join the venture so they can obtain necessary minerals at reliable prices.

The project is the “first-ever stockpile of critical minerals that you’ve been hearing so much about,” Mr. Trump said in the Oval Office, flanked by top officials and executives, including GM CEO Mary Barra. “For years, American businesses have risked running out of critical minerals during market disruptions.”

The idea is to jump-start projects in the U.S. and work with allies 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.

Mr. Trump likened the reserve to the Strategic Petroleum Reserve that protects the U.S. against shocks to oil prices and supply.

Interior Secretary Doug Burgum said the investment is the largest-ever approved by the Ex-Im Bank, a government-backed financial institution that promotes U.S. exports.

Separately, Secretary of State Marco Rubio will host the inaugural Critical Minerals Ministerial at the State Department on Wednesday. The ministerial will allow the U.S. to meet with delegations from major allies to find ways to strengthen and diversify their supply chains.

Vice President J.D. Vance will speak at the event.

“This historic gathering will create momentum for collaboration to secure these critical components vital to technological innovation, economic strength, and national security,” the State Department said Monday in a news release.

Wendy Cutler, a senior vice president at the Asia Society Policy Institute, said the U.S. likely accelerated mineral cooperation with India by striking a trade deal on Monday.

“It will help clear the pathway for the U.S. and India to work cooperatively on other pressing matters concerning critical minerals, technology cooperation, and supply chain resiliency,” she said.

Mr. Trump’s stockpile 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 its 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.

“We don’t want to go through what we went through a year ago, though it did work out,” Mr. Trump said.

The U.S. has rare earths, but it fell behind China when it seemed, in prior decades, that importing the minerals would be more cost-effective than extracting and processing them here.

“We are taking back critical minerals, we are taking back mining,” said Commerce Secretary Howard Lutnick.

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.

In July, the Defense Department made a large investment in MP Materials, a major American rare earths company, to ensure a steady supply of domestically mined materials.

The deal made the U.S. government a shareholder in the company, in line with Mr. Trump’s effort to take public stakes in other private companies that are vital to national security.