The Trump administration is moving forward with a large-scale effort to secure supplies of critical minerals, unveiling a $12 billion public-private initiative designed to protect U.S. manufacturers and reduce reliance on China-dominated supply chains.
The project, known as Project Vault, is structured as a commercial stockpile aimed at stabilizing access to minerals essential for industries ranging from autos and electronics to defense and advanced technology.
Administration officials say the initiative reflects a broader strategy to counter price swings, supply disruptions, and long-standing market pressures that have hindered domestic mining and processing.
Project Vault will be anchored by a $10 billion, 15-year loan from the U.S. Export-Import Bank, complemented by roughly $1.67 billion in private capital.
The stockpile is expected to include rare earth elements and other critical minerals subject to volatile pricing.
Commodities trading firms including Hartree Partners, Traxys North America, and Mercuria Energy Group are set to manage procurement.
The materials would be made available to manufacturers while keeping inventory risk off corporate balance sheets, an approach officials likened to pooled bulk purchasing.
The plan also envisions maintaining up to a 60-day emergency supply, with stockpiling already underway.
The EXIM Bank board is scheduled to vote on authorizing the loan, and an executive structure for the project is expected to give the agency a board seat.
Trump is set to meet with General Motors Chief Executive Mary Barra and mining billionaire Robert Friedland as part of consultations with producers and users of critical minerals.
The initiative unfolds amid heightened concern in Washington over China’s dominance of rare earth mining and processing, which officials view as a strategic vulnerability.
“The United States is too reliant on foreign sources of processed critical minerals … [This is] a significant national security vulnerability that could be exploited by foreign actors; weaken the industrial resilience of the United States; and expose the American people to supply chain disruptions,” the president said in a recent proclamation.
Beyond domestic measures, the administration is seeking cooperation with partners abroad.
The United States is preparing to host its first Critical Minerals Ministerial, with officials from India, South Korea, Australia, Mexico, and other partners expected to attend.
The talks are intended to strengthen global supply chains, encourage investment, and reduce dependence on China for key materials vital to modern manufacturing.