Trump Unleashes “Project Vault” Shock Plan

President Trump is moving to break Beijing’s chokehold on minerals that power America’s weapons, cars, and electronics—by building a $12 billion national stockpile.

Story Snapshot

The White House confirmed “Project Vault,” a $12 billion effort to stockpile critical and rare earth minerals to reduce reliance on China.
Funding includes a $10 billion Export-Import Bank loan over 15 years and more than $1 billion in private capital, with reports citing roughly $1.67 billion.
China is estimated to dominate roughly 70% of rare earth mining and about 90% of processing, giving Beijing leverage over U.S. supply chains.
The program is framed as a strategic reserve concept, similar in purpose to the Strategic Petroleum Reserve but focused on minerals.

Project Vault: What Trump’s White House Confirmed

White House officials confirmed Monday that the Trump administration is initiating “Project Vault,” a $12 billion strategic stockpile focused on critical and rare earth minerals. The goal, according to reporting that cites a White House official, is to cut U.S. dependence on Chinese supplies and reduce Beijing’s leverage. The minerals underpin everything from defense manufacturing to consumer tech, making supply disruption a national-security and economic risk, not just a market headache.

Reported funding centers on a $10 billion loan from the U.S. Export-Import Bank over 15 years, paired with more than $1 billion in private capital. One report places the private contribution at nearly $1.67 billion. The administration’s model emphasizes procurement and storage so manufacturers can access supplies when markets tighten. That approach echoes how government stockpiles are used to stabilize essential inputs during geopolitical shocks or trade disputes.

Why Rare Earths Matter: Defense, Chips, and the Real Economy

Critical minerals are not a culture-war abstraction; they are physical inputs for America’s industrial base. Reporting highlights uses tied to automakers, defense contractors, and technology producers. Minerals cited across coverage include cobalt and gallium, which play roles in high-tech manufacturing, alongside broader categories essential to batteries, semiconductors, and advanced electronics. When those supply chains seize up, factories slow, costs rise, and the U.S. becomes vulnerable to foreign pressure in moments that demand readiness.

The strategic concern is amplified by America’s current import exposure. Coverage notes that in 2024 the U.S. relied entirely on imports for 12 critical minerals and was at least 50% import-reliant for 29 others. That level of dependency creates a clear pressure point: if the U.S. gets boxed out of supply, it is not only prices that move. Production timelines for defense systems, aviation components, and high-end electronics can become bargaining chips in larger geopolitical fights.

China’s Dominance—and the Leverage It Creates

Multiple reports describe China’s dominance as a “chokehold,” citing estimates of roughly 70% control of rare earth mining and about 90% of processing capacity. Processing matters because mined material is not automatically usable; it must be refined and separated into forms manufacturers can deploy at scale. When one country commands that middle step, it can squeeze rivals without needing to halt every mine. That reality makes stockpiling and domestic capacity more than political theater.

The context is also historical. Reports point to earlier trade tensions in 2019, when China restricted rare earth exports during negotiations shaped by tariffs and broader economic pressure. The uses described—jet engines, radar systems, electric vehicles, laptops, and phones—show why Washington treats these inputs as strategic. Project Vault fits a familiar lesson: if the U.S. wants strong borders, strong defense, and strong industry, it cannot outsource core materials to an adversarial competitor.

Market Reaction and the Limits of What’s Known So Far

Markets responded immediately after the initial Bloomberg-reported plans circulated, with several U.S.-linked mining and metals names rising on the news. Coverage cites gains such as USA Rare Earth climbing about 6.5% and MP Materials about 5.5%, with other spikes reported in firms tied to antimony and critical metals. That reaction reflects investor belief that policy support could strengthen domestic producers, especially where government demand can anchor long-term projects.

"Trump launching $12 billion stockpile of rare earth minerals" – CBS News #SmartNews https://t.co/yGYPsViihV

— Joe Honest Truth (@JoeHonestTruth) February 2, 2026

Some details remain unsettled, and readers should separate confirmed facts from early-stage reporting. One account noted the plan was not yet “officially announced” even as the White House confirmed the initiative’s launch. Reports also vary on the private capital amount, describing it as “over $1 billion” versus roughly $1.67 billion. What is consistent is the direction: Washington is treating mineral access as strategic infrastructure, with financing designed to stand up U.S. alternatives to China’s dominance.