NEW DELHI: US President Donald Trump unveiled a landmark initiative to establish a $12 billion strategic stockpile of critical minerals aimed at strengthening U.S. manufacturing, insulating supply chains from disruption, and reducing dependence on Chinese suppliers. The program, internally dubbed Project Vault, was announced in an Oval Office event with senior officials and industry leaders in attendance.

Under the new plan, the stockpile will serve as a national strategic reserve for key materials such as rare earth elements, gallium, cobalt, nickel and lithium — minerals essential for electric vehicles, semiconductors, advanced weapon systems, renewable energy and other high-tech manufacturing.

“This will ensure that American businesses and workers are never harmed by shortages of critical materials,” Trump said, likening the effort to the U.S. Strategic Petroleum Reserve but focused on minerals vital to industry.

The $12 billion stockpile initiative will be financed through a combination of public and private capital:

$10 billion in seed funding from a loan backed by the U.S. Export-Import (EXIM) Bank — reportedly the largest in the bank’s history.

Approximately $1.67 billion to $2 billion in private investment, with commitments from major U.S. manufacturers and tech firms.

Participating companies include automakers, tech giants and aerospace firms that use these materials in core products. Commodities trading houses such as Hartree Partners, Traxys North America and Mercuria Energy Group are expected to handle procurement and storage logistics.

The initiative reflects growing concern in Washington over supply-chain vulnerabilities exposed by global disruptions and geopolitical competition, particularly with China’s dominant role in mining and processing of rare earths and other critical minerals. China accounts for an estimated 70% of global rare earth mining and more than 90% of processing capacity — a dependence U.S. policymakers view as a strategic weakness.

Project Vault is designed not only to stabilize supply for U.S. manufacturers, but also to diversify sources and build resilience against future export controls or price manipulation by foreign suppliers. The stockpile will act as a buffer — in some cases expected to hold roughly a 60-day supply of key materials for strategic use.

Markets have responded quickly to news of the plan, with shares of domestic rare-earth and critical-mineral producers rising as investors anticipate increased demand and government support.

Industry leaders at the Oval Office event voiced support for measures that reduce risk and encourage long-term investment in the U.S. supply chain, though experts note that expanding domestic production and refining capacity will take years.

The Trump administration is also using the stockpile announcement to galvanize international cooperation on critical minerals. Officials from scores of countries are expected in Washington this week for ministerial talks focused on building resilient supply chains with allies and partners.

Analysts say while the stockpile won’t immediately end U.S. reliance on foreign supplies, it signals a major shift in industrial policy — prioritizing supply-chain security at a time of intensifying U.S.–China economic rivalry.

EXIM’s board is set to vote on the record-setting loan, and implementation details — including exact storage locations, priority minerals and access protocols for manufacturers — are expected to be released in the coming weeks.