INTERNATIONAL
Trump launches $12 billion minerals stockpile to counter China
U.S. President Donald Trump speaks on the day he announced the creation of a critical mineral reserve, in the Oval Office at the White House, February 2, 2026. REUTERS/Evelyn Hockstein
WASHINGTON: U.S. President Donald Trump announced plans on Monday to launch a strategic stockpile of critical minerals backed by $10 billion in seed funding from the U.S. Export-Import Bank.
AI Brief
"For years, American businesses have risked running out of critical minerals during market disruptions," Trump said during an Oval Office event.
"Today, we're launching what will be known as Project Vault to ensure that American businesses and workers are never harmed by any shortage."
Washington has been moving to offset what policymakers view as Chinese manipulation of prices for lithium, nickel, rare earths and other critical minerals which are vital to making electric vehicles, high-tech weaponry and many other manufactured goods. That has stymied U.S. mining companies for years.
The project will combine $2 billion in private funding with a $10 billion loan from the EXIM Bank to acquire and stockpile minerals for automakers, technology companies and other manufacturers, Trump said. The export bank said it approved the loan on Monday.
Rare earth and critical minerals stocks, including MP Materials MP.N and USA Rare Earth Inc USAR.O, rose on media reports that an announcement on the $12 billion initiative was imminent.
General Motors GM.N Chief Executive Mary Barra and mining billionaire Robert Friedland, who represent both producers and users of critical minerals, attended the Oval Office event.
The project has attracted interest from a wide range of U.S. auto and technology companies.
Commodities trading firms Hartree Partners, Traxys North America and Mercuria Energy Group would manage the procurement of raw materials for the stockpile, a Trump administration official familiar with the plan told Reuters.
Project Vault is intended to help the U.S. auto industry while letting companies keep related risks off their balance sheets, the official said, comparing the logistics of the project to a Costco membership that allows for buying in large volumes.
Another goal is to maintain a 60-day supply of minerals for emergency use, the official said, adding that mineral stockpiling was already under way.
An executive structure is expected to be set up for the project and EXIM is likely to have a board seat, the official said.
Last month, a bipartisan group of U.S. lawmakers introduced a bill to create a $2.5 billion stockpile of critical minerals, aimed at stabilizing market prices and encouraging domestic mining and refining.
AI Brief
- U.S. President Donald Trump unveils Project Vault, a strategic stockpile of critical minerals with $10 billion funding from the U.S. Export-Import Bank to ensure a stable supply chain for American businesses and workers.
- The initiative aims to counter Chinese control over prices of vital minerals like lithium and rare earths, crucial for electric vehicles and high-tech weaponry, which has hindered U.S. mining companies for years.
- Project Vault will involve $2 billion in private funding and a $10 billion loan to acquire and stockpile minerals, managed by trading firms, benefitting various U.S. auto and technology companies while maintaining a 60-day emergency supply.
"For years, American businesses have risked running out of critical minerals during market disruptions," Trump said during an Oval Office event.
"Today, we're launching what will be known as Project Vault to ensure that American businesses and workers are never harmed by any shortage."
Washington has been moving to offset what policymakers view as Chinese manipulation of prices for lithium, nickel, rare earths and other critical minerals which are vital to making electric vehicles, high-tech weaponry and many other manufactured goods. That has stymied U.S. mining companies for years.
The project will combine $2 billion in private funding with a $10 billion loan from the EXIM Bank to acquire and stockpile minerals for automakers, technology companies and other manufacturers, Trump said. The export bank said it approved the loan on Monday.
Rare earth and critical minerals stocks, including MP Materials MP.N and USA Rare Earth Inc USAR.O, rose on media reports that an announcement on the $12 billion initiative was imminent.
General Motors GM.N Chief Executive Mary Barra and mining billionaire Robert Friedland, who represent both producers and users of critical minerals, attended the Oval Office event.
The project has attracted interest from a wide range of U.S. auto and technology companies.
Commodities trading firms Hartree Partners, Traxys North America and Mercuria Energy Group would manage the procurement of raw materials for the stockpile, a Trump administration official familiar with the plan told Reuters.
Project Vault is intended to help the U.S. auto industry while letting companies keep related risks off their balance sheets, the official said, comparing the logistics of the project to a Costco membership that allows for buying in large volumes.
Another goal is to maintain a 60-day supply of minerals for emergency use, the official said, adding that mineral stockpiling was already under way.
An executive structure is expected to be set up for the project and EXIM is likely to have a board seat, the official said.
Last month, a bipartisan group of U.S. lawmakers introduced a bill to create a $2.5 billion stockpile of critical minerals, aimed at stabilizing market prices and encouraging domestic mining and refining.