Trump Launches $12B Critical Minerals Reserve to Secure US Supply Chains

The deep-sea drilling vessel "Chikyu" successfully extracted rare earth-containing mud at a depth of 6,000 meters in the waters near Minamitorishima. The project leader indicated that this initiative aims to promote diversification of rare earth sources and reduce external dependence, with commercial mining expected to commence in February 2027. However, Japanese media pointed out that deep-sea mining faces technical and economic challenges: the 6,000-meter deep-sea environment is equivalent to 550 atmospheres of pressure, posing high risks of equipment failure; mining costs are more than 10 times those of land-based rare earths, the commercialization cycle may exceed 10 years, and ecological risks are irreversible.

For NEVs, the core impact of Project Vault does not lie in how much it drives up mineral prices in the short term, but in the following: improved certainty of subsidy compliance, reduced supply disruption risks at key nodes, and the formation of a more stable structural price spread between the compliant and non-compliant supply chains.

[SMM Flash: Cyclic Materials to Build Rare Earth Recycling Plant in South Carolina] Canadian rare earth and metal recycling enterprise Cyclic Materials announced plans to invest over $82 million to construct a rare earth recycling plant in South Carolina. This facility is the company's second announced synergistic plant in the US, with an initial capacity to process 2,000 mt of magnetic material, and the company plans to increase its annual processing capacity to 6,000 mt. The company also stated that the new plant is initially expected to produce 600 mt of mixed rare earth oxides annually, with future capacity potentially expandable to 1,800 mt to meet growing market demand.