US President Donald Trump has announced the creation of the country’s first-ever strategic reserve of critical minerals, called Project Vault. The initiative, aimed at reducing dependence on China for supplies of rare earth elements and other key materials, will be funded to the tune of approximately $12 billion.
‘Today, we are announcing the creation of the United States Strategic Reserve of Critical Minerals — the first-ever reserve of these minerals that you have heard so much about,’ Trump said in the Oval Office of the White House on 2 February. According to him, the reserve will protect American manufacturers from supply chain disruptions and prevent China from using its market dominance as leverage in trade negotiations.
Funding for the project includes a $10 billion loan from the Export-Import Bank of the United States and approximately $1.67–2 billion from private investors. The reserve will be intended for the civilian sector — automakers, electronics manufacturers, battery manufacturers, aircraft engine manufacturers and other industries. It will include materials such as gallium, cobalt, lithium and rare earth elements.
The reserve model is like the US Strategic Petroleum Reserve, but focuses on minerals needed for high-tech manufacturing. This will help stabilise prices and support domestic production and processing.
The announcement followed a series of measures by the Trump administration to strengthen supply chains, including a January executive order on negotiations with allies on critical minerals. Earlier, in January 2026, lawmakers from both parties proposed creating a similar $2.5 billion reserve, but Trump’s executive initiative was more ambitious.
Experts note that China controls a significant portion of global production and processing of critical minerals, which poses risks to the United States. The new reserve is designed to minimise these threats and stimulate the development of the American mining industry. The Vault project will be part of a broader strategy to ensure US economic and national security in the face of global competition.