US President Donald Trump has announced a 12-billion-dollar project to create a national stockpile of critical minerals, partly to ease US dependence on China for the key high-tech materials.
Trump said on Monday that automakers and other manufacturers will be able to tap the planned strategic reserve. He said the US already has a stockpile of critical minerals for national defense, but the new one would be the first for American industry.
The US Export-Import Bank is due to provide 10 billion dollars of seed money for the project through loans, with the remainder financed by the private sector.
The stockpile would help US companies hedge against risks, including supply shortages and price fluctuations.
The Trump administration is aiming to reduce dependence on China, which dominates the market for rare earths and other critical minerals.
In March last year, Trump signed an executive order to increase domestic production of the minerals by expediting federal authorization. Washington is also working with other countries to diversify supply chains.
