Trump Aims to Create Rare Earth Stockpile to Reduce Dependence on China

The U.S. plans to create a $12 billion rare earth stockpile to reduce dependence on China, which controls a large part of the value chain.

According to Bloomberg, the plan will be funded with $1.7 billion from private capital and $10 billion from the U.S. Export-Import Bank (EXIM), a loan expected to be approved immediately.

The plan concerns strategically important industries such as the automotive industry, digital services, and defense. This move comes as China uses its control of industrial magnets as a means of exerting pressure.

Chinese companies control a large part of the rare earth value chain, from mining to processing. Washington is concerned as Beijing has threatened to use this pressure lever during trade negotiations.

Source: ΚΥΠΕ