Trump Unveils $12 Billion 'Project Vault' to Secure Critical Minerals, Counter China's Supply Chain Stranglehold

In a significant move to reduce American dependence on foreign supply chains, the Trump administration is set to launch a $12 billion strategic stockpile program for critical minerals. Dubbed "Project Vault," the initiative aims to safeguard materials essential for national defense, consumer electronics, and green energy technologies from potential disruptions, primarily those stemming from China's market dominance.

First reported by Bloomberg, the program will combine $1.67 billion in private seed funding with approximately $10 billion in financing from the U.S. Export-Import Bank. The funds will be used to purchase and store minerals like gallium, used in advanced semiconductors, and cobalt, a key component in electric vehicle batteries and military jet engines.

The launch comes amid escalating trade tensions and follows China's recent use of export controls on key materials as a countermeasure in the ongoing trade dispute. Beijing processes the vast majority of the world's rare earth elements and other critical minerals, giving it considerable leverage. Administration officials have drawn parallels between Project Vault and the Strategic Petroleum Reserve, established after the 1973 oil crisis, framing it as a necessary "relief valve" for the modern economy.

"This isn't just about defense; it's about economic resilience," a senior administration official stated. "A shock to the supply of these materials could cripple everything from auto manufacturing to aerospace, with devastating knock-on effects."

While a separate, smaller stockpile exists for exclusive military use, Project Vault is designed to support a broader range of civilian industries. Major corporations, including General Motors, Stellantis, Boeing, Corning, GE Vernova, and Google, have already committed to participating.

The administration's push extends beyond domestic stockpiling. Secretary of State Marco Rubio is expected to urge allied nations to forge similar agreements at a multilateral summit on critical minerals this week, signaling a coordinated Western effort to diversify supply sources and reduce collective vulnerability.

Voices from the Industry

David Chen, Supply Chain Analyst at TechInsight: "This is a overdue but pragmatic step. For years, we've treated critical mineral supply as a pure market efficiency problem, ignoring the massive geopolitical risk. Building a buffer is basic risk management for the national economy."

Senator Lisa Hammond (D-CO): "While securing supply chains is vital, pouring billions into a stockpile is a reactive, costly band-aid. This administration should be investing more aggressively in domestic mining, recycling innovation, and material science to find alternatives. We're treating the symptom, not the disease."

Michael Rhodes, CEO of a midwestern battery component startup: "This is a game-changer for manufacturers like us. Price volatility and allocation fears from overseas suppliers have stalled investment decisions for years. Knowing there's a federal backstop provides the certainty we need to expand U.S. production lines and hire here."

Anya Petrova, Commentator for 'Geopolitical Risk Digest': "$12 billion to hide minerals in a vault? This is a theatrical, wasteful response to a decade of failed industrial policy. It admits we've lost the production battle to China and are now just hoarding scraps. True strategy would mean out-innovating and out-producing them, not just building a bigger pantry."