President Donald Trump has announced the creation of the first ever U.S. Strategic Critical Minerals Reserve, a multibillion dollar effort designed to reduce America’s dependence on China and protect key industries from supply disruptions.
Standing at the White House, Trump called the initiative a historic step to protect American workers and manufacturers.
“Today we’re announcing the creation of the U.S. Strategic Critical Minerals Reserve, the first ever stockpile of critical minerals that you’ve been hearing so much about,” Trump said. “For years, American businesses have risked running out of critical minerals during market disruptions… Project Vault will ensure that American businesses and workers are never harmed by any shortage.”
The program has been dubbed Project Vault.
What Is Project Vault
Project Vault is a federally supported stockpile of rare earth elements and other critical minerals. It is modeled after the Strategic Petroleum Reserve, which was created after the 1970s oil crisis and can store up to 714 million barrels of emergency crude oil.
Instead of oil, this reserve will store minerals and rare earth elements such as gallium and cobalt. These materials are essential for artificial intelligence systems, batteries, jet engines, smartphones, electric vehicles, and advanced military systems.
Trump explained the reasoning clearly. “Just as we have long had a strategic petroleum reserve and a stockpile of critical minerals for national defense, we’re now creating this reserve for American industry, so we don’t have any problems.”
The United States remains heavily dependent on foreign suppliers for many of these materials. According to the International Energy Agency, as of 2024 the U.S. was at least 93 percent import dependent on rare earth elements and graphite.
In some cases the dependence is total. The administration found that the U.S. was 100 percent reliant on imports for 12 critical minerals and about 50 percent reliant on another 29.
China dominates the global supply chain. It is responsible for nearly 60 percent of the world’s rare earth mining and more than 90 percent of magnet manufacturing. In addition, administration officials say China controls about 90 percent of the broader critical mineral supply chain.
Industry leaders warn that this dependence creates serious risks.
“The Chinese are willing to weaponize access to semiconductor materials like gallium and uranium,” said Graphite One advisor Dan McGroarty. “Then they turn off the tap and sort things out, give us a one year reprieve… it’s a leash and they can yank that leash anytime they want.”
McGroarty warned that the U.S. is “one crisis away” from having rare earth elements cut off by adversaries like China.
What Counts as a Critical Mineral
Critical minerals include rare earth elements, a group of 17 elements with special magnetic properties that make them vital to modern technology. They are used in everything from smartphones and electric vehicles to fighter jets, missiles, and night vision systems.
Graphite is another key material, used in batteries and other advanced applications. The United States currently relies heavily on China and Africa for graphite supplies.
Anthony Huston, CEO of Graphite One, said that critical minerals now play the same strategic role oil once did.
He compared Project Vault to the Strategic Petroleum Reserve and argued that these materials now power modern defense systems, advanced electronics, and electric vehicles.
Why This Is a National Security Issue
Administration officials insist that this effort is not just about economics. It is about national security.
Critical minerals are used in a wide range of defense applications, including fighter jets, missiles, and night vision equipment. If supply chains are disrupted, the U.S. military could face shortages.
Huston also pointed to another risk. Some African mineral deposits are located in regions where ISIS linked groups have operated. By developing domestic resources and stockpiling materials, he argued, the U.S. can reduce exposure to unstable or hostile regions.
“As they say when you’re flying, put the oxygen mask on yourself first before turning to help those around,” Huston said.
Project Vault is expected to cost about $12 billion.
The plan combines $10 billion in financing from the U.S. Export Import Bank with nearly $2 billion in private capital. Trump emphasized that the American taxpayer could ultimately benefit from the interest on the loan used to start the project.
“This historic initiative will combine $10 billion in Export Import Bank financing with $2 billion in private sector financing,” Trump said. “We even expect the American taxpayer to make a profit from the interest on the loan used to start Project Vault.”
Companies that participate must agree to purchase minerals from the reserve at a set inventory price. As the stockpile fills, firms will pay carrying costs to cover the loan and storage expenses. They will be allowed to draw from their stored materials as long as they replenish them, and in the event of a major disruption, they could access the full stockpile.
Major firms expected to participate include General Motors, Stellantis, Boeing, GE Vernova, and Google. By joining, companies can shield themselves from volatile market prices without having to maintain massive inventories on their own.
Industry Reaction and Market Response
The announcement immediately moved markets. U.S. listed rare earth mining stocks surged after Trump outlined the plan.
Critical Metals jumped more than 10 percent. USA Rare Earth rose nearly 11 percent. MP Materials gained about 4 percent. Energy Fuels, Idaho Strategic Resources, and NioCorp Developments also saw significant gains.
From an industry perspective, Wade Senti, president of Advanced Magnet Lab, said it is critically important to see the United States taking “decisive steps” to shore up minerals and rare earths.
However, he added that the next step will be just as important. “Looking ahead, what is even more critical will be putting these minerals to use in permanent magnets that power the technologies of the future from EVs to humanoid robots.”
China based analysts have dismissed the move as only a short term buffer rather than a long term solution. But U.S. officials and industry leaders argue that it represents a major shift in strategy.
Project Vault is part of a broader effort by the Trump administration to rebuild the critical mineral supply chain. Over the past year, the administration has expedited federal permitting for mining projects and signed critical mineral deals with countries around the world.
Trump said his administration has taken “extraordinary steps” to make sure the United States has all the critical minerals and rare earths it needs.
The president framed the move as building on past lessons.
“We don’t want to ever go through what we went through a year ago,” Trump said.
By creating a strategic reserve for minerals, the administration is treating these materials as essential infrastructure. Just as oil once defined energy security, rare earths and critical minerals now define technological and military security.
