Trump Unveils $12B Minerals Vault to Reduce Reliance on China
In a significant move to safeguard the U.S. manufacturing sector, President Donald Trump has announced the launch of “Project Vault.” This initiative features a substantial investment of $12 billion, aimed at reducing the country’s dependence on Chinese critical minerals. The announcement confirms the U.S. government’s commitment to securing essential resources for various industries.
Overview of Project Vault
Project Vault will draw from a combination of private investment and federal loans. Specifically, it will utilize $1.67 billion in private capital along with a $10 billion loan from the U.S. Export-Import Bank. This funding will be used to purchase and stockpile vital minerals essential for the automotive and technology sectors.
Goals and Materials
This strategic reserve is modeled after the U.S. emergency oil reserve but focuses on critical materials such as gallium and cobalt. These minerals are widely used in products including:
- Smartphones
- Jet engines
- Automobiles
Project Vault underlines the government’s efforts to redirect U.S. supply chains away from China, the leading global producer of these materials.
Key Participants
More than a dozen companies have expressed interest in the project, including:
- General Motors Co.
- Stellantis NV
- Boeing Co.
- Corning Inc.
- GE Vernova Inc.
- Alphabet Inc.’s Google
Commodities trading firms like Hartree Partners LP, Traxys North America LLC, and Mercuria Energy Group Ltd. will manage the procurement of the minerals needed for this stockpile.
Support from Government Officials
Harvey Kaye, chairman of U.S. Critical Materials, emphasized the importance of this project: “Project Vault is a clear signal that U.S. critical-mineral policy has moved to deployment.” He highlighted that reliable access to these minerals is now classified as strategic infrastructure for both the economy and national defense.
Addressing Supply Shortages
The urgency behind this initiative is further underscored by existing stockpile gaps for civilian industries. The Pentagon is ramping up its mineral acquisitions, targeting an immediate investment of $1 billion. Trump’s administration is supporting this effort through the One Big Beautiful Bill Act, which allocates $7.5 billion for minerals and provides funds for expanding the national stockpile by 2027.
The Path Forward
With Project Vault, companies that commit to fixed-price purchases will be able to draw on their reserves during significant supply disruptions. They are also required to replenish the materials over time, promoting stability in market prices. The bipartisan proposal for a $2.5 billion critical minerals stockpile aims to further stabilize prices and stimulate domestic mining operations.
As confidence in the credit quality of participating manufacturers remains high, Project Vault represents a pivotal shift in U.S. policy regarding critical minerals, positioning the nation towards a more self-sufficient future.
