Jovanovic said during an interview with the Council on Foreign Relations on Wednesday that the creation of a creditworthy repository was necessary because manufacturers aren’t holding inventory on-hand to absorb supply shocks because their stakeholders aren’t rewarding such behavior. The vault, he said, will be demand-driven and procure and hold critical minerals for companies at the level and grade they request.
Abigail Hunter, executive director of SAFE’s Center for Critical Minerals Strategy, said it’s an approach that addresses looming commercial vulnerabilities. Ford’s production line shut down last year after China cut off supplies of rare earths amid an escalating trade spat.
An industry-led approach could also help address the “lack of commercial stockpiles, the lack of readiness of major manufacturers who are leveraging just-in-time manufacturing in the worst case scenario,” said Hunter. And incentivizing private companies with the backing of an independent entity like Ex-Im that can help store raw minerals across the U.S. is “savvy,” she added.
Read the full article: “Trump’s mineral stockpile takes shape.”
