Project Vault Targets Critical Minerals as US Seeks to Reduce China Dependence

Remy: The Trump administration is continuing its critical minerals push by teaming up with allies. America is launching Project Ball to reduce reliance on China for rare earths, and this initiative buys and stores critical minerals such as cobalt and rare earth elements. Now, representatives from 55 countries were in DC last week to work on mineral security, which does show a number of U.S. allies will be involved as we kick off the trading week. Joining me to weigh in is Jeff Gitterman, managing director for Gitterman Asset Management. Jeff, great to have you here. Thank you so much for joining me.

Jeff: Thanks for having me.

Remy: Well, tell me about Project Vault. Do you think this will really make a dent when it comes to the race?

Jeff: It's going to be really difficult because getting mining online is not a short term thing. Sometimes it can take 10 to 30 years to actually get a mine up and running and efficiently running. We still have lots of permitting issues in the US that stop that, and we have to get them mined and then into production, and just because we mine them, we don't necessarily have the production facilities anymore that China has to actually get those mined elements of rare earth minerals from the mine into the production factories, and then out to the products that need them. We're also competing on a huge race, because the same rare earth minerals that are needed for renewables are needed for AI, are going to be needed for robotics.

So we've got these three driving engines that all need rare earths, and we don't have a good, efficient supply for them. I mean, we're talking to Ukraine, but how easy is it going to be to go into Ukraine in the middle of a war and start mining for rare earth minerals there So we're definitely at a disadvantage against China.

Remy: Yeah. And Jeff, who ends up being the real winners here when it comes to Project Vault?

Jeff: I mean, I think ultimately, still, China winds up being the real winner because China, ultimately it's being shown to the world, has mass control over a lot of these rare earth minerals. And as much as we're starting to spend money to catch up, China's like 20 or 30 years ahead of us in this race. So it's going to become definitely a bargaining chip when it comes to tariffs and other issues that the U.S. is going to be dealing with with China, as much as we're trying to catch up and we're threatening to catch up. China still has a pretty good foothold that should keep us at bay for a while.

Remy: And of course, when we're talking about an initiative such as the center project, there's a lot of focus on national security. So what are the implications here? And in the long run, what do you think the impact will be?

Jeff: The biggest market implication is that we've all looked at supply and demand equation as driving price. when you start looking at global security as the issue, supply and demand goes out the window and price at any level of security comes into the issue.

So these volatile spikes that we've seen in the metals markets, you're going to see them translate into the rare earth minerals markets as well. They're not as easy to buy, but rest assured, some ETF companies are going to be coming to the races with either one off or basket of ETFs to buy rare earths. As soon as probably today is over.

Remy: And for American viewers who are watching this right now and they're wondering what will this impact be on their wallets, what would you say to them?

Jeff: It's going to make things like your iPhone more expensive. It's going to make AI more expensive. So ultimately someone's got to pay for it. And as we know, ultimately the consumer eventually winds up paying for it, whether it's tariffs or price hikes because the minerals markets and rare earth metals. So ultimately it's an inflation check on the U.S. consumer.

Remy: And of course, when we're talking about costs, it's not just the American consumer but also the environment. So when it comes to policy and what's happening right now, what are your expectations and what does this mean when it comes to the environment of the U.S.?

Jeff: I mean, the biggest negative for the renewable markets is that these rare earth minerals are needed for both AI and robotics and the renewable energy market. And you couldn't just look around as of late to see who the U.S. is going to wind up funding first. There's already enough pressure on renewable energy in the U.S. It's going to flow towards AI and robotics companies to make sure those rare earth minerals are available. So that also hurts the environment, hurts the U.S. consumer. Ultimately, because we need renewables as backup, they are one of the cheapest things to bring online right now, especially solar. So it means more expenses and more damage to the climate and the environment, which ultimately then hurts the consumer as well.

Remy: Well,Jeff, we will have to leave it there for today, but I'm sure this is an area that you and I will continue to focus on as we head into 2026. So thank you so much for sharing all of your insights.

Jeff: Thanks.

Remy: Thank you Jeff.