The Trump administration has announced a new initiative to build a U.S. stockpile of critical minerals, committing $12 billion to reduce the country’s dependence on China for key resources.
The program, known as Project Vault and is designed to protect American manufacturers from supply disruptions as the U.S. works to secure alternative sources of rare earth materials.
According to a White House official, the initiative will begin with $1.67 billion in private investment, alongside a $10 billion loan from the U.S. Export-Import Bank.
President Trump is expected to meet Monday at the White House with General Motors CEO Mary Barra and mining entrepreneur Robert Friedland to discuss the effort.
China currently accounts for roughly 60–70% of global rare earth mining. These minerals are essential to modern technology and defense systems, including electric vehicles, smartphones, fighter jets, and medical imaging equipment. Any disruption in supply could significantly impact production across these industries.
To counter this risk, the administration has pursued rare earth partnerships with countries such as Australia, Japan, and several nations in Southeast Asia, while also encouraging European allies to diversify their supply chains. In October, Trump and Australian Prime Minister Anthony Albanese signed an $8.5 billion agreement related to rare earth development.
China tightened exports of rare earth materials last year amid ongoing trade tensions with the United States.
Treasury Secretary Scott Bessent also announced the opening of a rare earth mineral processing facility in South Carolina late last year, with similar projects underway in Texas and other states.
“This is the first magnet made in the U.S. in 25 years we’re ending China’s chokehold on our supply chain,” Bessent said at the time.
