Trump launches $12B critical mineral reserve to curb foreign reliance

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President Donald Trump has signed an executive order to create a $12 billion critical mineral stockpile, a key step in the administration’s efforts to reduce U.S. dependence on other countries for materials vital to the defense, energy, auto and technology industries.

The president signed the order on Monday at a White House ceremony that included administration officials and industry leaders, including General Motors CEO Mary Barra. 

“Today, we’re launching what will be known as Project Vault to ensure that American businesses and workers are never harmed by any shortage,” Trump said, comparing the initiative to the U.S. petroleum reserve created to protect the U.S. economy from severe disruptions in oil supplies. 

Funding for the U.S. Strategic Critical Minerals Reserve includes a $10 billion loan from the U.S. Export-Import Bank and $2 billion in private sector financing, Trump said. The president did not provide further details, and the executive order had not been published as of Tuesday afternoon.

However, the Export-Import Bank issued a press release saying the reserve would be an independently governed public-private partnership. The bank is providing a long-term $10 billion direct loan to an alliance of original equipment manufacturers and private-sector capital providers in support of the reserve.

The bank said there were “initial indications of participation” from OEMs, including Clarios, GE Vernova, Western Digital and Boeing. Suppliers that will service Project Vault included Hartree Partners, Mercuria Americas and Traxys, per the release.

The critical mineral initiative advances Trump’s economic and national security objectives by reducing dependence on foreign-controlled supply chains to avoid disruptions that would harm the domestic industrial base, the bank said.

Before establishing the reserve, the Trump administration had been bolstering critical mineral suppliers through loans and funding. Late last month, the Commerce Department’s CHIPS Program Office signed a non-binding letter of intent with USA Rare Earth covering up to $1.6 billion in proposed support.

The LOI envisions $277 million in proposed federal funding and a $1.3 billion proposed senior secured loan to help USA Rare Earth accelerate development of its mining, processing and manufacturing operations. 

Other companies that have entered private deals with the Trump administration before the latest announcement included Vulcan Elements and MP Materials.

Along with pursuing deals with private companies, Trump has also instructed cabinet officials to negotiate trade agreements on the import of critical minerals and their derivatives with trading partners following a Section 232 probe into the sector.