Trump unveils Project Vault, a nearly $12bn critical minerals reserve

Donald Trump announced the creation of a critical mineral reserve called Project Vault, a stockpile worth nearly $12bn intended to shield American businesses and workers from shortages and to counter China’s leverage in the sector. He said the measure would ensure that "American businesses and workers are never harmed by any shortage." The project will be initially funded by a $10bn loan from the US Export‑Import Bank and nearly $1.67bn in private capital, with the government‑backed loan set for a 15‑year period.

Trump compared the reserve to the Strategic Petroleum Reserve and said he expected the government to make a profit from the loan used to start the reserve. The announcement noted China’s dominance in the market, controlling about 70% of rare earths mining and 90% of processing, and recalled a previous episode when China restricted exports of rare earths used in jet engines, radar systems, electric vehicles, laptops and phones during trade talks.

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