US launches $12B rare earths reserve plan

The Trump administration plans to build a $12 billion stockpile of critical minerals to protect American manufacturers from supply shortages and reduce reliance on China.

Coined Project Vault, it will use $1.67 billion in private investment and a $10 billion loan from the US Export-Import Bank. 

Under the project, the government will buy and store essential minerals and maintain an emergency supply of at least 60 days. Companies will be able to access these materials when needed, allowing them to avoid holding large and costly inventories.

After the announcement, shares of rare earth and mining companies rose.

President Donald Trump said the US must secure key materials needed for cars, electronics, and defense equipment. China currently controls about 90% of global rare-earth processing, giving it strong control over supply.

Last year, Beijing added export limits that made it harder for US companies to buy rare-earth magnets.

Project Vault will store minerals such as cobalt, gallium, and rare earths, similar to the Strategic Petroleum Reserve for oil. More than a dozen companies, including major automakers and tech firms, have agreed to participate.

Industry leaders say the stockpile will strengthen the supply chain, protect national security, and support US factories. Officials expect it to lower risks and keep production running smoothly.