Source: Fortune
Summary
The White House and the U.S. Export-Import Bank have launched “Project Vault,” a critical minerals stockpile aimed at reducing China’s dominance in the supply chain. Industry analysts say the project is needed, but it’s just the first step in a long-term effort to break China’s stranglehold on critical minerals, including rare earths. The initial $12 billion effort includes a $10 billion loan and $2 billion in private sector investment. The project has been compared to the U.S. Strategic Petroleum Reserve.
Our Reading
The numbers tell one story.
Project Vault is a $12 billion effort to stockpile critical minerals, but it’s just the beginning of a long-term plan to break China’s dominance. The U.S. government has already invested in several U.S. and Canadian critical minerals mining and processing companies. Industry analysts say the project is needed, but it’s unclear if it will be effective. The bottleneck is not just mining and sourcing, but also processing. The U.S. is playing a game of catch-up in the critical minerals sector.
This is a nationalization of U.S. minerals in all but name.
Author: Evan Null
