President Trump is set to initiate a $12 billion stockpile of essential minerals, aiming to decrease U.S. reliance on Chinese supplies and stabilize prices for manufacturers, according to reports.
The initiative, called Project Vault, will be backed by $1.67 billion in private investments and a $10 billion loan from the U.S. Export-Import Bank, as confirmed by a White House representative.
Project Vault marks Trump’s latest strategy to challenge China’s dominance over rare earth minerals, which are vital for various industries like automotive, aerospace, and energy. Bloomberg was the first to report on this.
Following the announcement, shares of U.S. rare earth mining companies, including NioCorp Developments and Critical Metals Inc., saw substantial increases—up 9.3%, 4.8%, 5.9%, and 3.3%, respectively.
This unique mineral stockpile is intended to function similarly to the emergency oil reserves, with the administration looking to stabilize prices and mitigate supply disruptions.
Firms that agree to buy materials at a predetermined price will pay an upfront fee and inform Project Vault of their desired minerals.
A critical element of these contracts requires manufacturers to not only purchase a specified quantity of material but also commit to repurchasing the same amount in the future at the original price.
The U.S. already maintains stockpiles of critical minerals for national security, but this will be the first stockpile designated for private companies.
Minerals such as gallium and cobalt will be the focus, as they’re integral to a range of products—from smartphones and electric car batteries to jet engines and military applications.
Over a dozen companies have joined the initiative, including industry giants like General Motors and Boeing, as reported by Bloomberg.
Three commodity trading firms—Hartley Partners, Traxys North America, and Mercuria Energy Group—will manage the procurement of these raw materials, according to Bloomberg.
The board of directors at the Export-Import Bank is anticipated to approve the notable 15-year loan soon.
Meanwhile, Trump is scheduled to meet with GM’s CEO and mining tycoon Robert Friedland, both of whom heavily rely on these vital minerals.
These moves come as the Trump administration intensifies efforts to promote domestic mineral production and processing, particularly after China tightened exports on certain minerals last year.
This situation highlighted America’s heavy dependence on foreign rare earth supplies, especially from China, which controlled about 70% of U.S. rare earth imports from 2020 to 2023. According to statistics, that figure rose to 80% last year.
Historically, the U.S. was once a leader in rare earth production. However, processes involved—like separating uranium and thorium—raised concerns about radioactive waste and environmental impacts.
It’s not only China that’s a concern. For instance, Russia is a major nickel supplier, and prices soared for this metal after the Ukraine invasion.
Under Trump’s administration, direct investments were made in domestic mineral companies to boost output, along with agreements for rare earth projects with countries like Australia, Japan, and Malaysia.
Trump reportedly plans to urge more nations to sign rare earth agreements during a summit in Washington on Wednesday.
