WASHINGTON, February 2, 2026, 14:06 EST
- Trump kicked off a $12 billion program aimed at building up reserves of critical minerals vital for U.S. manufacturers and the defense industry.
- The plan combines a $10 billion Export-Import Bank loan with private investment, aiming to build an emergency supply buffer.
- Shares in rare-earth and critical-minerals companies jumped after news broke, with investors anticipating increased U.S. backing for the industry.
President Donald Trump announced Project Vault on Monday, a $12 billion initiative aimed at creating a strategic reserve of critical minerals. The move targets reducing China’s dominance over key resources vital to sectors like electric vehicles and advanced weaponry. (Reuters)
The timing highlights a supply chain issue that’s no longer hypothetical. China dominates roughly 70% of rare earth mining and about 90% of processing. Last year, during trade talks linked to tariffs, it limited exports, squeezing the supply of materials crucial for jet engines, radar systems, electric vehicles, and consumer electronics. (AP News)
The White House presented the program as a direct reaction to import reliance. It highlighted that in 2024, the U.S. depended completely on imports for 12 critical minerals and sourced at least half of 29 others from abroad.
Officials are calling Project Vault a public-private effort: a $10 billion loan from the U.S. Export-Import Bank combined with about $1.67 billion from private investors. The Ex-Im board gave the green light to the loan early Monday. Commodities traders Hartree Partners, Traxys North America, and Mercuria Energy Group will manage the purchases, and major manufacturers are expected to join in. (E&E News by POLITICO)
The program aims for about a 60-day emergency supply, sources familiar with the plan say. One official explained it functions more like a bulk purchase deal than a typical government stockpile, designed to shift raw-material risks away from corporate balance sheets.
Big industrial players are signing on. The Financial Times revealed that General Motors, Lockheed Martin, and Google have become Vault members, agreeing to pay for emergency access. Ex-Im described the move as a way to “protect domestic manufacturers from supply shocks” and bolster the U.S. critical minerals industry. (Financial Times)
Investors took the stockpile as a new sign of policy backing. In pre-market moves, U.S.-listed rare-earth and critical-minerals stocks surged, with names like USA Rare Earth and various smaller miners seeing noticeable gains.
The administration insists it requires multiple strategies. The United States already runs a National Defense Stockpile for military purposes, and officials highlight past government support for domestic miners and processors as part of efforts to establish supply chains independent of China.
Congress is working on a separate front. Last month, a bipartisan group of lawmakers unveiled a bill proposing a $2.5 billion “Strategic Resilience Reserve” designed to stabilize prices and boost domestic mining and refining efforts. Meanwhile, China has denied accusations of manipulating critical-minerals markets. (Reuters)
Execution risks lie squarely in the plan’s path. Mineral prices fluctuate wildly, and while stockpiles can ease shortages, they don’t fix the core challenge: creating mines and processing plants that can endure a drawn-out price war. On the topic of price supports, Reg Spencer from Canaccord emphasized that “projects will have to be developed on their own merits,” highlighting that government support won’t necessarily override the economic realities keeping private investors wary. (Reuters)
The project arrives just before a coordinated effort on supply security. U.S. officials plan to spotlight Project Vault this week at a ministerial meeting in Washington, joined by dozens of partners aiming to reshape minerals trade and investment. Senior administration officials are scheduled to participate.
