Hamster strategy: Trump is stockpiling

The U.S. is building a strategic mineral reserve

XAU/USD

Key zone: 4,650.00- 4,850.00

Buy: 4,850.00 (after retesting the 4700 level); target 5,100-5,250; StopLoss 4,750.00

Sell: 4,600.00 (on strong negative fundamentals); target 4,250-4,150; StopLoss 4,700.00

Trump is launching the creation of a strategic reserve of critical minerals with an initial capital of $12 billion. The White House has not yet officially commented on the program, but the stated goal is to counter China. Business interests, of course, are also involved.

The Project Vault initiative, reported by Bloomberg, follows the model of the Strategic Petroleum Reserve (SPR). The program is intended to offset what U.S. policymakers consider price manipulation in lithium, nickel, rare earth elements (hereinafter – REEs), and other vital minerals used in the production of electric vehicles and high-tech weapons. According to Trump, these speculative practices have long constrained the activity of U.S. mining companies.

The plan предполагает combining $1.67 billion in private investment with a $10 billion loan from the U.S. Export-Import Bank — more than double the bank’s previous record loan.

The capital will be directed toward purchasing and storing minerals for automakers, technology companies, and other industries.

More than a dozen companies are participating in the project, including General Motors, Stellantis, Boeing, Corning, GE Vernova, and Google. Procurement for this “state warehouse” will be handled by trading companies Hartree Partners, Traxys North America, Mercuria Energy Group, and others.

It is expected that the reserves will include both REEs and other key minerals, as well as strategically important materials whose prices may fluctuate sharply.

Project objectives:

  • Reduce critical dependence on China, which controls a significant share of global production and processing of rare earth elements (about 70–90% in different market segments).
  • Create a “safety cushion” for key U.S. industries — automotive, defense, electronics, IT, and energy — in case of shocks in global supply chains.
  • Support stability within economic and defense sectors.
  • Stabilize market prices and stimulate domestic mining and processing.
  • The Board of Directors of the U.S. Export-Import Bank is expected to vote on Monday to approve a record 15-year loan exceeding the bank’s previous record by more than double, Bloomberg reports.

By forming a strategic reserve of rare earth materials, the U.S. is simultaneously financing an alternative to China across the entire chain: raw material extraction – technology development – manufacturing.

At the same time, the U.S. is actively building alliances and trade agreements with Australia and other allies to expand access to rare-group minerals, reducing global supply concentration.

The main beneficiaries of this project are specific companies, primarily in the U.S.

Stocks in critical mineral mining and processing:

  • MP Materials Corp. (NYSE: MP) – the largest REE mining operator in the U.S. (Mountain Pass, California).
  • USA Rare Earth Inc. (NASDAQ: USAR) – Round Top project (Texas) with REEs and magnet production.
  • NioCorp Developments Ltd (NASDAQ: NB) – Elk Creek project (Nebraska) with niobium, scandium, titanium, and other materials.
  • Energy Fuels Inc. (NYSE: UUUU) – uranium and REE producer, including processing via White Mesa Mill.

ETFs and commodity funds, for example:

VanEck Rare Earth and Strategic Metals ETF (NYSE: REMX), Sprott Critical Materials ETF (NYSE: SETM)

Risks to consider:

  • Geopolitical: further actions by China (export restrictions, tariffs) may abruptly change market structure.
  • Technological: the emergence of alternative materials or processing technologies may change participants’ valuations.
  • Regulatory: government programs often change, especially depending on political cycles.

The modern market is “fed” not only by gold and silver, but also by rarer and more valuable materials. However, these opportunities require careful risk analysis, deep understanding of demand structure, and long-term industry trends.

So we act wisely and avoid unnecessary risks.

Profits to y’all!