Trump launches ‘Project Vault’: $12bn critical minerals stockpile to shield US industry from China’s dominance

President Trump has officially announced the creation of a critical mineral reserve with a nearly $12bn strategic stockpile that could counter China’s ability to use its dominance of the hard-to-process metals in trade talks. The initiative specifically aims to protect American civilian industries from supply chain shocks and reduce the United States’ deep reliance on China for essential raw materials.

Trump said at White House on Monday, “Today we are launching what will be known as Project Vault to American businesses and workers are never harmed by any shortage.”

Initially, the project will be funded by a $10bn loan from the US Export-Import Bank and nearly $1.67bn in private capital. The minerals set aside would help to protect the manufacturers of vehicles, electronics, and other goods from any supply-chain disruption.

In line with Trump’s expectations, the government will make a profit from the loan being used to initiate the reserve.

China controls about 70% of the world’s rare earths mining and 90% of global rare earths processing. The recent strategic reserve is expected to be the prominent highlight of a ministerial meeting on critical minerals that the secretary of state, Marco Rubio will host at the state department on Wednesday.

According to The Guardian, Vice-president JD Vance will deliver keynote remarks as the meeting is also expected to include the signing of bilateral agreements and coordinate supply chain logistics. The State Department intends to announce at the meeting that the gathering will create momentum for collaboration among participants to secure access to rare earths.

The government backed loan funding the reserve has a 15-year term. Nevertheless, the US government has previously taken stakes in the rare earths' miner MP Materials, while also providing financial support to Vulcan Elements and USA Rare Earth.