Trump to begin stockpiling critical minerals with $12 billion in seed money
Trump's administration is trying to cut off reliance on Chinese rare earths
Maria Bartiromo interviews Barbara Humpton, CEO of USA Rare Earth, about the Trump administration's $1.6 billion investment in domestic rare earth supplies.
President Donald Trump's administration announced plans to begin stockpiling critical minerals on Monday, starting off the program with $12 billion in seed money, Fox News has learned.
The new program, first reported by Bloomberg, seeks to insulate U.S. manufacturers from supply shortages as America seeks to lessen its reliance on Chinese materials.
A White House official confirmed to Fox News that the program has been dubbed "Project Vault," and will kick off with funding of $1.67 billion in private cash as well as a $10 billion loan from the U.S. Export-Import Bank.
Trump is scheduled to meet on Monday with General Motors CEO Mary Barra and mining billionaire Robert Friedland at the White House.
TRUMP HOSTS 'WASHINGTON ACCORDS' RWANDA-CONGO PEACE DEAL SIGNING, VOWS US RARE EARTHS PURCHASES
The Trump administration has sought to diversify by making rare earth agreements with Australia, Japan and countries in Southeast Asia. (Bonnie Cash/UPI/Bloomberg via Getty Images)
China currently controls between 60-70% of rare earth mining. Rare earths are the foundation materials for much of modern technology and defense systems. Without these elements, production of EVs, iPhones, F-35 fighter jets, and even MRI machines would stall.
The Trump administration has already sought to diversify by making rare earth agreements with Australia, Japan and countries in Southeast Asia. He has also urged European allies to do the same.
Trump and Australian Prime Minister Anthony Albanese signed an $8.5 billion deal on the topic in October.
FROM MOJAVE TO BEIJING: HOW AMERICA QUIETLY CONCEDED THE RARE EARTH RACE
China controls up to 70% of the world's rare earth mining. (Bloomberg via Getty Images)
The Chinese government restricted the exports of its rare earth materials last year during trade disputes with the Trump administration.
Treasury Secretary Scott Bessent also announced a new rare earth mineral processing center in South Carolina late last year. Similar projects are ongoing in Texas and elsewhere in the U.S.
"This is the first magnet made in the U.S. in 25 years — we’re ending China’s chokehold on our supply chain," Bessent said at the time.
Treasury Secretary Scott Bessent says the U.S. is working to become independent on rare earth supplies. (Alex Wong/Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"They started it 18 months ago. The state of South Carolina — Governor McMaster was fantastic," Bessent said. "They said it took them eight weeks to get permits. They couldn’t believe how fast it was. And this is President Trump’s all-hands-on-deck for this national security emergency."
FOX Business' Elizabeth MacDonald contributed to this report.