Trump Unveils $12 Billion Rare Earths Reserve To Cut China Reliance

Set to shield US manufacturers from supply shocks and cut China reliance, Trump launches the $12 billion Project Vault initiative.

US President Donald Trump is set to launch a $12 billion initiative to build a strategic reserve of critical minerals, aimed at protecting American manufacturers from supply shocks and reducing reliance on China. The project, known as Project Vault, would combine $1.67 billion in private investment with a $10 billion loan from the US Export Import Bank to secure minerals essential to industries such as automotive, technology and aerospace.

Senior administration officials said the initiative would function as a civilian counterpart to the nation’s emergency oil reserve, but would focus instead on minerals such as gallium, cobalt and rare earths used in products ranging from smartphones to jet engines. The reserve is expected to include rare earths, critical minerals and other strategically important elements vulnerable to sharp price swings.

More than a dozen major companies have joined the project, including General Motors, Boeing, Stellantis, Corning, GE Vernova and Google. Commodities trading firms Hartree Partners, Traxys North America and Mercuria Energy Group will manage procurement. The Export Import Bank’s board is scheduled to vote on the 15 year loan, which would be the largest deal in the bank’s history.

The move follows China’s tightening of export controls in 2025, which exposed vulnerabilities in global mineral supply chains and forced some US manufacturers to cut output. Under the scheme, participating companies will be able to lock in future mineral purchases at set prices, insulating themselves from market volatility.

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The administration has already signed cooperation agreements with countries including Australia and Japan and plans to pursue further partnerships at an international summit in Washington. Officials said Project Vault has been oversubscribed, reflecting strong investor interest and confidence in the participating manufacturers.

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Vidushi Saxena
Vidushi Saxena
Vidushi Saxena is a Journalist at EFY, with a strong interest in news reporting, in-depth research, and developments shaping the business and technology landscape.

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