Trump's $12 Billion Mineral Reserve Will Initially Buy Rare Earths From China, Officials Confirm

The United States is preparing a major strategic shift in its critical minerals policy, with a new $12 billion initiative under President Donald Trump aimed at building a national stockpile of rare earth and critical minerals. The project, called “Project Vault,” is designed to protect the US economy and defence supply chains from global shortages and price shocks, particularly in materials essential for batteries, semiconductors, and renewable energy systems.

According to officials involved in the Export-Import Bank-led programme, the initial phase of Project Vault will source minerals from global suppliers—including China—despite long-standing efforts in Washington to reduce dependency on Beijing. The plan is being described as a short-term necessity rather than a long-term strategy, meant to rapidly build reserves while alternative supply chains are developed.

The $12 billion initiative combines around $10 billion in government-backed loans with approximately $2 billion in private capital. In its early stage, procurement will prioritise availability and speed, meaning materials may be purchased even at higher costs if they are immediately accessible. This approach is intended to create a “buffer stock” against disruptions in global supply chains, which remain highly concentrated in a few countries.

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In the next phase, the system is expected to transition into a “replenishment model,” where sourcing will gradually shift toward domestic producers in the United States, followed by allied nations, and only then to other global suppliers. Officials say this structure is meant to encourage long-term investment in US mining and refining capacity while still ensuring short-term security of supply.

A key feature of the programme is its demand-driven design, where manufacturers will help determine which materials are stockpiled, while trading firms manage procurement and logistics. The goal is to improve price transparency and reduce volatility in markets that are often fragmented and dominated by a few suppliers, particularly in rare earths where China remains the dominant global player. Officials say Project Vault could reshape how the US manages strategic materials for decades, balancing economic security with industrial policy goals.

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