Exclusive: Experts in the industry caution that the U.S. is “one more crisis away” from losing critical access to rare earth elements, essential for everything from fighter jets to electric vehicles. In response, President Donald Trump has launched a $12 billion initiative called Project Vault to alleviate this risk.
This project, which includes $1.67 billion in private investment and a $10 billion loan from the Export-Import Bank, aims to establish a government-supported reserve of rare earth elements and other vital minerals. Currently, the U.S. relies heavily on imports from China for many of these materials.
Leaders at Graphite One, a significant player in China’s critical minerals sector, shared with Fox News Digital that this initiative could shift the balance in the struggle against Chinese control over global supply chains.
“China is eager to control access to materials like gallium and uranium,” remarked Dan McGroarty, an adviser to Graphite One. “They can just turn it off whenever they want, and then it’s up to us to sort it out.” It’s a precarious situation, really.
When asked about his ambitions regarding Greenland, Trump simply stated: ‘We’ll see.’
Anthony Huston, the CEO, drew parallels to the Strategic Petroleum Reserve established during the 1970s oil crisis, emphasizing that critical minerals today are just as crucial for modern defense systems, advanced electronics, and electric vehicles.
“For years, American companies faced risks of critical mineral shortages due to market volatility… Project Vault [will] secure a stable supply for American businesses and workers,” asserted Trump during a recent announcement.
Graphite One also made headlines recently for its massive Graphite Creek site in Alaska, dubbed a “truly generational” asset for specific critical minerals.
According to the International Energy Agency, by 2024, the U.S. is set to depend on imports for at least 93% of its rare earth elements and graphite, remaining heavily reliant on foreign sources for many other crucial minerals.
Trump understands the strategic importance of Greenland
“The U.S. is highly dependent on China and Africa for graphite. Given what we know, China can’t be seen as a friend,” Huston stated.
Interestingly, there’s a counterterrorism angle tied to Project Vault that hasn’t received much attention. Huston mentioned that certain deposits in Africa, particularly in Mozambique, are near regions where ISIS-affiliated groups have been active. By bringing these critical mineral resources closer to home, he believes the U.S. can not only combat China’s supremacy but also undercut terrorist operations.
McGroarty further remarked that Project Vault evokes the concept of “dual-use technology” from the Cold War era. Back then, certain computer technologies were restricted for export but could simultaneously be leveraged for both manufacturing goods and developing nuclear weapons.
“You’ll need to balance not just oil, but many metals, minerals, and composites,” he emphasized.
Trump’s assertion on global defense strategies is clear
McGroarty pointed out that the U.S. is “one crisis away” from having its rare earth resources potentially cut off by adversaries, notably China.
Huston elaborated on the importance of Project Vault in today’s context, noting the absence of technology like cell phones or electric cars in previous decades. The Graphite Creek facility once aided in World War II steel production, but it now has far greater potential in our high-tech world. He echoed the sentiment that the U.S. needs its own “strategic reserves” of critical minerals instead of depending on others.
“As the adage goes, you have to put your own oxygen mask on before assisting others,” he explained.
Trump hints at strategic moves regarding Greenland and Arctic security
When queried about possible connections between Project Vault, renewed Senate focus on Arctic security, and Trump’s Greenland thoughts, McGroarty suggested there might be links but didn’t specify.
He humorously suggested that sometimes it’s better to survey the Earth from above instead of the side, highlighting the strategic significance of North America.
“The Arctic presence of various countries underscores the importance of Greenland. The U.S. is considered an Arctic state primarily because of Alaska,” he said.
Notably, Alaska is known to have resources for at least 58 of the 60 critical minerals on the U.S. government’s official list.
Concerns about external control over resources rise
“It’s similar with Greenland. There’s a term I use: resource denial. We may downplay Greenland’s mineral potential, but if one day we find ourselves faced with China and Russia building economic ties there, channeling those resources into their own supply chains, well, it’s a troubling scenario,” he added.
Meanwhile, experts from China expressed skepticism about Project Vault. Rare earth analyst Wu Chenhui remarked to the Global Times that while Trump’s initiative is innovative, it serves as more of a temporary fix than a lasting solution, reflecting a wider sentiment among Chinese officials.
