Trump launches $12B minerals vault to cut China reliance

US President Donald Trump is preparing to launch a strategic stockpile of critical minerals backed by $12 billion, aiming to protect manufacturers from supply disruptions as the US accelerates efforts to reduce dependence on Chinese metals.

The White House confirmed on Monday the start of “Project Vault,” which would combine $1.67 billion in private capital with a $10 billion loan from the US Export-Import Bank to buy and store minerals for automakers, technology companies and other industrial users. 

The model mirrors the country’s emergency oil reserve but focuses instead on materials such as gallium and cobalt used in products ranging from smartphones to jet engines.

The project spans the automotive, aerospace and energy sectors and underscores Trump’s broader push to rewire US supply chains away from China, the world’s dominant producer and processor of critical minerals.

More than a dozen companies have reportedly signed on, including General Motors Co., Stellantis NV, Boeing Co., Corning Inc., GE Vernova Inc. and Alphabet Inc.’s Google. Commodities traders Hartree Partners LP, Traxys North America LLC and Mercuria Energy Group Ltd. will handle purchases to fill the stockpile.

Beyond defence 

Trump is scheduled to meet Monday with GM chief executive officer Mary Barra and mining entrepreneur Robert Friedland, representing both consumers and producers of critical minerals. 

While the US already maintains a national stockpile for defence purposes, it lacks a comparable reserve for civilian industry. That gap has taken on urgency as the Pentagon ramps up its own accelerated stockpiling campaign, targeting up to $1 billion in mineral acquisitions in the near term. The drive is supported by Trump’s One Big Beautiful Bill Act, which allocates $7.5 billion for critical minerals, including $2 billion to expand the national stockpile by 2027, $5 billion for supply-chain investments and $500 million for a Pentagon credit program to encourage private projects.

The administration has also taken the unusual step of investing directly in domestic mining companies to boost US rare earths production and processing.

Last month, a bipartisan group of US lawmakers introduced a bill to create a $2.5 billion stockpile of critical minerals, a move aimed at stabilizing market prices and encouraging domestic mining and refining.

Senior administration officials told Bloomberg News Project Vault was oversubscribed, citing investor confidence in the credit quality of participating manufacturers, their long-term purchase commitments and the backing of the US export-credit agency. Under the plan, companies can draw down their allotted materials as long as they replenish them, with full access permitted during major supply disruptions.

Manufacturers that commit to buying set quantities at fixed prices will also agree to repurchase the same amounts at the same cost in the future, a structure the administration says will help stabilize prices and dampen market volatility.

Bloomberg News was the first to report the creation of the critical minerals strategic reserve.