Trump Admin Launches $12 Billion Strategic Rare Earths Reserve/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The Trump administration is launching “Project Vault,” a $12 billion initiative to create a U.S. stockpile of rare earth elements. Funded by a loan from the U.S. Export-Import Bank and private capital, the reserve aims to reduce dependency on China. The effort is designed to protect U.S. manufacturers and national security from future supply chain disruptions.
Quick Look
- Project Vault to build strategic U.S. rare earths reserve
- $10B federal loan + $1.67B private investment
- Goal: Reduce reliance on China’s rare earths processing
- Stockpile supports defense, auto, tech, and clean energy industries
- Inspired by China’s 2025 export restrictions during trade disputes
- Rare earths crucial for jet engines, EVs, laptops, radar systems
- U.S. government has prior investments in MP Materials, Vulcan Elements, USA Rare Earth
- Trump to meet with GM CEO Mary Barra and investor Robert Friedland
Trump Admin Launches $12 Billion Strategic Rare Earths Reserve: Deep Look
The Trump administration on Monday unveiled Project Vault, a major new initiative to secure the United States’ access to rare earth elements essential to national defense, technology, and energy manufacturing. The plan involves creating a strategic stockpile, backed by a $10 billion loan from the U.S. Export-Import Bank and an additional $1.67 billion in private capital.
Rare earth elements are critical components in military and consumer technologies — from jet engines and radar systems to electric vehicles, smartphones, and wind turbines. Yet China controls 70% of global mining and 90% of processing, a strategic advantage it leveraged during past trade disputes.
President Donald Trump imposed tariffs on Chinese imports in 2025, prompting Beijing to restrict rare earth exports, heightening concerns in Washington over U.S. vulnerability to supply shocks.
By creating a domestic strategic reserve — similar to the Strategic Petroleum Reserve — the administration aims to protect industries and boost economic independence. The stockpile is expected to be a buffer against geopolitical risk, natural disasters, or other market disruptions.
The U.S. has already taken steps in this direction, backing companies like MP Materials, Vulcan Elements, and USA Rare Earth to accelerate domestic sourcing and processing of these crucial minerals.
The $10 billion loan will be issued with a 15-year term, and project leaders expect sourcing, processing, and storage facilities to be developed in key mining states like Texas, California, and Nevada.
On Monday, Trump is scheduled to meet with Mary Barra and mining investor Robert Friedland to discuss the project’s industrial and strategic implications.
Bloomberg News was the first to report details of Project Vault.
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