Trump to Launch 12 Billion Dollar "Treasury Plan" to Boost U.S. Manufacturing and Counter China
According to a Reuters report on Monday, February 2, a Trump administration official familiar with the plan said that President Trump is preparing to launch a strategic critical mineral reserve plan, which will be funded with $12 billion from the U.S. Export-Import Bank.
Reuters noted that this investment marks Washington's latest move to counter the impact of China's dominance in the prices of lithium, nickel, rare earths, and other key minerals - minerals crucial for products ranging from electric vehicles to high-tech weapons, which have long hindered the development of U.S. mining companies.
According to Bloomberg's exclusive report, the project, named the "Treasury Plan," will combine private funding (initially estimated at $1.67 billion) with a $10 billion loan provided by the Export-Import Bank, to enable automakers, tech companies, and other manufacturers to acquire and stockpile mineral resources.
As news of the $12 billion reserve plan spread, shares of rare earth and critical mineral stocks such as MP Materials and American Rare Earth rose sharply.
The Export-Import Bank board will vote later Monday to authorize a 15-year, $10 billion loan.
According to another administration source familiar with the meeting, Trump will meet with General Motors CEO Mary Barra and mining magnate Robert Friedland on Monday, representing producers and users of critical minerals respectively.
The White House has not yet responded to requests for comment.
The report noted that Trump's mineral reserve plan has attracted attention from numerous American auto and tech companies.
Officials told Reuters that commodity traders Hartree Partners, Traxys North America, and Mercuria Energy Group will be responsible for the procurement of raw materials for the reserves.
It is understood that the reserve plan covers rare earths, critical minerals, and other strategically important elements, all of which face price volatility risks. The official said the "Treasury Plan" aims to support the U.S. automotive industry and help companies avoid balance sheet risks, operating similarly to Costco's membership model allowing bulk purchases.
The aforementioned official said another goal is to establish a 60-day emergency mineral reserve, and that mineral reserve work has already begun. He added that the project will set up an implementation framework, and the Export-Import Bank may gain board seats.
Last month, bipartisan U.S. lawmakers introduced a bill to establish a $2.5 billion critical mineral reserve, aiming to stabilize market prices and encourage domestic mining and refining industries.
Source: rfi
Original: toutiao.com/article/1856049574950091/
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