WASHINGTON, February 2, 2026, 14:06 EST
- Trump launched a $12 billion initiative to stockpile critical minerals used by U.S. manufacturers and the defense sector.
- The plan pairs a $10 billion Export-Import Bank loan with private funding and targets an emergency supply buffer.
- Rare-earth and critical-minerals shares rose on the news as investors bet on stronger U.S. support for the sector.
President Donald Trump on Monday launched Project Vault, a $12 billion push to build a strategic stockpile of critical minerals, as his administration tries to curb China’s leverage over supplies used in everything from electric vehicles to high-tech weapons. (Reuters)
The timing reflects a supply chain problem that has stopped being theoretical. China controls about 70% of rare earth mining and around 90% of processing, and it restricted exports during trade talks last year tied to tariffs, tightening the screws on inputs used in jet engines, radar systems, electric vehicles and consumer electronics. (AP News)
The White House has framed the program as a response to import dependence. It said the United States in 2024 was entirely reliant on imports for 12 critical minerals and imported 50% or more of 29 others.
Officials have described Project Vault as a public-private structure: a $10 billion loan from the U.S. Export-Import Bank plus roughly $1.67 billion from private investors. The Ex-Im board approved the loan early Monday, and commodities trading firms Hartree Partners, Traxys North America and Mercuria Energy Group are set to handle purchases, with major manufacturers expected to participate. (E&E News by POLITICO)
The program targets roughly a 60-day supply for emergency use, according to people briefed on the plan. One official described the mechanics as closer to a bulk-buying arrangement than a traditional government stockpile, meant to keep raw-material risk off corporate balance sheets.
Big industrial users are lining up. The Financial Times reported that companies including General Motors, Lockheed Martin and Google have joined as Vault members and would pay fees for emergency access, while Ex-Im said the effort would “protect domestic manufacturers from supply shocks” and strengthen the U.S. critical minerals sector. (Financial Times)
In markets, investors treated the stockpile as a fresh signal of policy support. Pre-market trading showed jumps across U.S.-listed rare-earth and critical-minerals names, including USA Rare Earth and several smaller miners.
The administration has argued it needs more than one tool. The United States already maintains a National Defense Stockpile for military needs, and officials have pointed to prior government backing for domestic miners and processors as Washington tries to build supply chains outside China.
Congress is moving on a parallel track. A bipartisan group of lawmakers last month introduced legislation for a $2.5 billion “Strategic Resilience Reserve” aimed at stabilizing prices and encouraging domestic mining and refining; China has rejected claims that it manipulates critical-minerals markets. (Reuters)
But execution risks sit right in the middle of the plan. Mineral prices swing hard, and a stockpile can smooth shortages without solving the harder problem: building mines and processing plants that can survive a prolonged price war. In a separate policy debate on price supports, Reg Spencer of Canaccord said “projects will have to be developed on their own merits,” a reminder that government backing may not remove the economics that have kept private money cautious in the sector. (Reuters)
The project also lands ahead of an allied push on supply security. U.S. officials are expected to highlight Project Vault this week at a ministerial meeting in Washington with dozens of partners focused on reshaping minerals trade and investment, with senior administration figures slated to take part.
