Trump Launches $12 Billion 'Project Vault' to Counter China's Grip on Critical Minerals
February 02, 2026 · by Fintool Agent
President Donald Trump is launching a first-of-its-kind strategic stockpile of critical minerals with $12 billion in seed money, marking Washington's most aggressive move yet to insulate American industry from China's dominance over the materials that power everything from electric vehicles to fighter jets.
The venture—dubbed Project Vault—combines $1.67 billion in private capital with a $10 billion loan from the U.S. Export-Import Bank to procure and store minerals for automakers, technology companies, and defense contractors.
The EXIM Bank's board is set to vote Monday to authorize the 15-year loan, which would be more than double the largest deal ever executed by the agency. Trump is scheduled to meet Monday with General Motors+1.71% CEO Mary Barra and mining billionaire Robert Friedland.
Rare earth and critical mineral stocks surged on the news, with Niocorp+21.75% jumping 9%, Us Antimony+22.77% up 6%, and TMC the Metals Company+7.47% gaining 5%.
Ask Fintool AI AgentThe Strategic Imperative
The initiative addresses a glaring vulnerability in American manufacturing. China controls approximately 70% of global rare earths mining and 90% of processing—a chokehold that Beijing has weaponized in trade negotiations.
In April 2025, China imposed export controls on seven heavy rare earth elements and certain magnet materials. In October, Beijing expanded these restrictions to include products containing even small amounts of Chinese-origin rare earths. These moves disrupted supply chains and sent prices spiking.
The stockpile is modeled on the nation's Strategic Petroleum Reserve but focused on minerals—such as gallium and cobalt—used in iPhones, EV batteries, jet engines, and defense systems. Project Vault represents the first commercial-scale strategic reserve for critical minerals; the U.S. previously maintained only a defense-focused national stockpile.
How Project Vault Works
The structure resembles what one administration official described as "a Costco membership" for critical minerals—allowing manufacturers to buy in large volumes while keeping supply risk off their balance sheets.
Key mechanics:
- Companies commit to purchase materials at specified prices and pay up-front fees
- Project Vault procures and stores the minerals through three trading houses
- Manufacturers can draw down their allotment as long as they replenish it
- During major supply disruptions, full access is permitted
- A repurchase commitment at the same price creates a price stabilization mechanism
The target: maintain a 60-day supply of minerals for emergency use. Stockpiling has already begun.
Corporate Heavyweights Sign On
More than a dozen companies have committed to Project Vault, including major end-users across critical industries:
| Company | Ticker | Industry | Today's Move |
|---|---|---|---|
| General Motors+1.71% | GM | Automotive | -0.7% |
| Stellantis+0.20% | STLA | Automotive | +1.1% |
| Boeing+0.06% | BA | Aerospace | +0.2% |
| Ge Vernova+3.35% | GEV | Energy/Power | +4.0% |
| Corning+2.20% | GLW | Tech/Materials | +6.1% |
| Alphabet (google)-1.16% | GOOGL | Tech | +1.3% |
Three commodities trading houses—Hartree Partners, Traxys North America, and Mercuria Energy Group—will manage procurement of raw materials for the stockpile.
Corning+2.20% and Ge Vernova+3.35% both hit 52-week highs on the news, with Corning surging 6% to $109.51 and GE Vernova climbing 4% to $755.29.
Why This Matters for Automakers
The EV transition has made critical mineral supply chains an existential issue for automakers. General Motors+1.71% has been explicit about the risks in recent filings:
"Elevated cost, or reduced availability, of critical materials for our EV propulsion systems, including lithium, nickel, cobalt, and certain rare earth metals, may lead to higher production costs for our EVs and could impede our ability to successfully deliver on our EV strategy."
GM has already moved aggressively to secure supply through offtake agreements for raw materials including lithium, cathode active material, manganese, graphite, nickel, cobalt, rare earth elements, and permanent motor magnets.
The company's partnership with MP Materials+9.30%, which supplies U.S.-sourced rare earth materials and magnets for electric motors, makes GM a natural anchor for Project Vault.
Ask Fintool AI AgentThe Domestic Supply Chain Buildout
Project Vault arrives amid a wave of investment in U.S. rare earth production:
MP Materials+9.30% (MP) - The largest rare earth producer in the Western Hemisphere, operating the only mining and processing site of scale in North America at Mountain Pass, California. In July 2025, MP entered a transformational public-private partnership with the Department of Defense including:
- A $600 million investment commitment from MP
- Construction of a second domestic magnet manufacturing facility (10X Facility)
- An NdPr price floor protection agreement at $110/kg
- An agreement to cease all sales to China
MP also signed a $200 million supply agreement with Apple for magnets and rare earth recycling.
USA Rare Earth+17.42% (USAR) - Just closed a $1.5 billion PIPE financing on January 29 to accelerate its mine-to-magnet value chain across the U.S., UK, and Europe. The company is developing the Round Top deposit and magnet manufacturing in Stillwater, Oklahoma.
The government has also taken equity stakes in domestic miners, including previous investments in MP Materials, Vulcan Elements, and USA Rare Earth.
Mining Stocks React
| Company | Ticker | Price | Today | 1-Month | Market Cap |
|---|---|---|---|---|---|
| MP Materials+9.30% | MP | $61.01 | +3.8% | +21.0% | $10.8B |
| Energy Fuels+16.75% | UUUU | $21.61 | -3.7% | +48.8% | $5.1B |
| USA Rare Earth+17.42% | USAR | $10.79 | -1.8% | — | $3.0B |
| TMC the Metals Company+7.47% | TMC | $6.96 | +5.1% | — | $2.9B |
| Critical Metals+20.25% | CRML | $13.72 | +4.2% | — | $1.3B |
| Us Antimony+22.77% | UAMY | $7.79 | +6.3% | — | $0.9B |
| Niocorp+21.75% | NB | $6.43 | +9.0% | +22.2% | $0.5B |
MP Materials, the sector leader, has rallied 21% in the past month as government support for domestic rare earth production has intensified. The stock remains well below its 52-week high of $100.25.
The Bigger Picture: A Summit This Week
Project Vault is part of a broader diplomatic push. The administration has already signed cooperation agreements with Australia, Japan, Malaysia, and other countries on critical minerals.
This week, dozens of countries will convene in Washington for a summit focused on building an ex-China supply chain for critical minerals. The gathering represents the most ambitious international coordination effort yet on the issue.
Last month, a bipartisan group of U.S. lawmakers introduced a bill to create a $2.5 billion stockpile of critical minerals—a smaller-scale complement to Project Vault focused on stabilizing market prices and encouraging domestic mining and refining.
What to Watch
Near-term catalysts:
- EXIM Bank board vote on the $10 billion loan (Monday)
- Trump meeting with GM CEO Mary Barra and Robert Friedland (Monday)
- International critical minerals summit (Wednesday)
- Potential additional company announcements joining Project Vault
Longer-term:
- Execution of procurement and stockpiling
- Impact on rare earth prices and supply stability
- Whether structure successfully insulates manufacturers from China supply shocks
- Additional government investment in domestic mining capacity
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