The Export-Import Bank of the United States (US Exim) has approved a US$10bn loan to help shore up the country’s reserves of critical minerals and support domestic manufacturers.
The US Strategic Critical Minerals Reserve – dubbed Project Vault – is a supply chain security initiative between the US government and several private companies to store raw materials in facilities across the nation.
US Exim’s direct loan of up to US$10bn will give long-term financing to a partnership between original equipment manufacturers and private sector capital providers.
According to Bloomberg, a further US$1.67bn from institutional investors will also be available.
The outlet reported that manufacturers will pay upfront fees to secure fixed prices for metals, as well as carrying costs, while commodity traders will be charged fees to participate. Project Vault will procure and store the goods.
The deal represents the largest in US Exim’s history, the bank’s chairman John Jovanovic told reporters at the White House on February 3.
Manufacturers such as Clarios, GE Vernova, Western Digital and Boeing have expressed interest in participating, US Exim said, while commodity suppliers include Hartree Partners, Mercuria Americas and Traxys.
Jovanovic said Project Vault “is designed to support domestic manufacturers from supply shocks, support US production and processing of critical raw materials, and strengthen America’s critical minerals sector”.
US Exim said the initiative will advance President Donald Trump’s national security strategy, which is based on the country’s ‘America First’ policy.
Brian Falik, president of Mercuria Energy Americas, said: “Project Vault represents a transformative approach to strategic sourcing, and Mercuria is honoured to contribute to this historic effort.
“By aligning private capital with national security objectives, we’re reinforcing the foundations of American manufacturing and ensuring long-term access to critical raw materials. This partnership is a testament to what’s possible when industry and government move decisively together.”
Scott Strazik, chief executive of GE Vernova, added: “As we rise to the challenge of meeting America’s and the world’s rapidly growing needs for key power and grid equipment, the need to grow supply chains and access to critical minerals has never been more important.”
The financing is the latest in US Exim’s drive to support the US’ production and supply of critical minerals.
In October last year, it signed seven letters of interest totalling more than US$2.2bn to advance critical minerals projects in Australia, while in March it issued a letter of interest to a US$553mn rare earths project in Wyoming.
Bloomberg reported this week that the EU is looking to pitch a critical minerals partnership to the US to minimise China’s influence.
