Mercuria Backs US Strategic Minerals Reserve with $500 Million Commitment
Mercuria's Strategic Investment in US Critical Minerals
Project Vault: Ensuring US Access to Critical Minerals
Sept 23 (Reuters) - Swiss-based commodities trader Mercuria announced a $500 million commitment to Project Vault on Wednesday, aimed at ensuring US industry participants retain access to critical minerals during periods of supply disruption or market dislocation.
Support from the Export-Import Bank and Project Goals
• Project Vault, designed with support from the Export-Import Bank of the United States, seeks to build strategic inventories of critical minerals for use by the US.
Announcement at the United Nations General Assembly
• Mercuria announced its commitment to the initiative in New York during the United Nations General Assembly summit.
Industry Partnerships and Global Context
Glencore's Role as Founding Partner
• Switzerland-based mining company Glencore also announced on Wednesday its selection by the US government to be a founding partner in the project.
US-China Relations and Rare Earth Market Dynamics
US President's Diplomatic Approach
• Meanwhile, US President Donald Trump has taken a less combative approach than usual ahead of his meeting with Chinese President Xi Jinping this week, largely due to China's near-total control of rare earth minerals, experts said.
China's Dominance in Rare Earth Supply Chain
• China controls up to 70% of global rare-earth mining, 85% of refining capacity, and about 90% of rare-earth metal alloy and magnet production, according to consultancy AlixPartners.
Challenges in US Access to Rare Earths
• Some Chinese rare earth suppliers are declining to ship to the US for fear of repercussions from Beijing, three sources said, underscoring how access to the materials remains an issue for the US.
(Reporting by Pablo Sinha in Bengaluru;Editing by Elaine Hardcastle)
