Trump Plans to Launch a $12 Billion Strategic Critical Minerals Reserve Program

Summary

The Trump administration plans to launch “Project Vault,” a $12 billion strategic critical minerals reserve program, to reduce US dependency on China. The plan aims to protect manufacturers from supply shocks by stockpiling rare earths and other metals. It will be structured as a joint venture, combining $1.67 billion in private capital with a $10 billion loan from the US Export-Import Bank.USHK News Major companies like General Motors and Google are reportedly involved.USHK News

Impact Analysis

So this “Project Vault” is basically the government using the Ex-Im Bank’s balance sheet to create a massive, state-backed buyer for critical minerals.USHK News+ 2 It’s a clever way to inject $12 billion into the market without a messy fiscal fight. The goal is obvious: break China’s stranglehold on rare earths and protect companies like GM and Google, who are already in on the plan.USHK News This isn’t just a passive stockpile; it’s active industrial policy designed to de-risk key supply chains. The first-order effect is a huge, non-speculative demand shock for the entire sector. It provides a guaranteed buyer for any non-Chinese producer, fundamentally changing the risk profile for new projects. The market is about to re-price what it means to be a Western rare earths miner. The clear trade is to be long the producers before this $12 billion wave of buying hits.