The Trump administration has unveiled a new initiative aimed at stockpiling critical minerals, with an initial investment of $12 billion. This program, named "Project Vault," is designed to bolster U.S. manufacturing against supply shortages and reduce dependence on Chinese materials, which currently dominate the rare earth market.
According to a White House official, the program will launch with $1.67 billion in private funding and a $10 billion loan from the U.S. Export-Import Bank. President Trump is set to meet with General Motors CEO Mary Barra and mining executive Robert Friedland to discuss the initiative.
China controls approximately 60-70% of global rare earth mining, essential for the production of various technologies, including electric vehicles, smartphones, and defense systems. In response to this reliance, the Trump administration has pursued agreements with Australia, Japan, and Southeast Asian countries to diversify supply sources. A notable agreement was reached with Australia in October, involving an $8.5 billion deal.
The administration's efforts come in the wake of previous export restrictions imposed by China during trade disputes. In addition to stockpiling initiatives, the U.S. is establishing rare earth mineral processing facilities, including one in South Carolina, to enhance domestic capabilities. Treasury Secretary Scott Bessent highlighted this facility as a significant step toward ending reliance on Chinese supplies, noting it produced the first magnet made in the U.S. in 25 years.
Overall, the initiative represents a strategic move by the Trump administration to secure critical mineral supplies and strengthen national security in the face of international trade challenges.