US President Donald Trump is set to launch a strategic critical minerals stockpile with US$12 billion in seed money, Bloomberg News reported on Monday, citing people familiar with the matter.

The reported move would mark Washington's latest attempt to offset what policymakers view as Chinese manipulation of prices for lithium, nickel, rare earths and other critical minerals - vital for items from electric vehicles to high-tech weaponry - that has stymied American mining companies for years.

Bloomberg said the venture, Project Vault, will combine US$1.67 billion in private funding with a US$10 billion loan from the US Export-Import Bank to acquire and stockpile the minerals for automakers, technology companies and other manufacturers.

Reuters could not immediately verify the report. The White House did not immediately respond to a request for comment.

The project has attracted participation from more than a dozen companies, including General Motors, Stellantis , Boeing, Corning, GE Vernova and Alphabet’s Google, the report said.

It said commodities trading firms Hartree Partners, Traxys North America and Mercuria Energy Group would manage the procurement of raw materials for the stockpile.

The stockpile is expected to include both rare earths and critical minerals as well as other strategically important elements that are subject to volatile prices, the Bloomberg report added.

Last month, a bipartisan group of U.S. lawmakers introduced a bill to create a US$2.5 billion stockpile of critical minerals, a move aimed at stabilizing market prices and encouraging domestic mining and refining.

The Ex-Im bank's board will vote later on Monday on authorizing the record 15-year loan, more than double the size of the bank’s next largest transaction, Bloomberg reported.

REUTERS

Trump launches US$12 billion minerals stockpile to counter China, Bloomberg News reports