Glencore (LSE:GLEN) is partnering with the Export-Import Bank of the US (EXIM) to help build the country’s strategic critical minerals stockpile.
The mining and commodity trading group says it has been selected by the US Government to participate in VaultCo, a public-private partnership designed to bolster the country’s critical minerals supply chain.
VaultCo is the rebranded version of Project Vault, an initiative launched by the Trump administration earlier this year to establish the US Strategic Critical Minerals Reserve.
The initiative is backed by an EXIM loan of up to US$10 billion ($14.21 billion), plus nearly US$2 billion in private sector investment. It aims to ensure the US industry has access to critical minerals during supply disruptions.
VaultCo was launched in New York during the United Nations General Assembly this week.
Glencore to source minerals
Under the partnership, Glencore will source, procure, and deliver critical minerals and base metals for the US stockpile.
The initiative combines EXIM’s financing capacity with Glencore’s global supply network in an effort to reduce vulnerabilities across US critical mineral supply chains, according to the company.
VaultCo Executive Chair Brett Lambert, who is also the managing director of The Densmore Group, says VaultCo aims to tackle mineral security.
“Mineral security is national security. VaultCo is working to ensure the US industrial base has access to the critical minerals needed to build the products everyday Americans rely on,” Lambert says.
Glencore Head of Marketing for Metals and Bulks Jyothish George says the partnership represents a new approach to strengthening supply chain resilience.
“VaultCo is an innovative approach to strengthening supply chain resilience. We are pleased to be partnering with the US Export-Import Bank and VaultCo to support critical minerals security and help ensure American industry has access to the materials it needs,” George says.
Mercuria joins stockpile push
Glencore is not the only major commodity trader participating in the initiative.
Mercuria Energy Group has also announced a US$500 million commitment to VaultCo, adding further private sector backing to the US Government’s push to secure supplies of critical minerals.
“With our Project Vault [now VaultCo] participation, Mercuria is supporting a US government and EXIM-backed structure that gives US industry greater supply certainty and reduces exposure to global market disruptions,” Mercuria Americas President Brian Falik says.
Write to Jackson Chen at Mining.com.au
Image: Glencore Canada
