Trump Announces $12 Billion Plan to Stockpile Critical Minerals

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Written by John Egan for IIR News Intelligence (Sugar Land Texas)

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Summary

Details remain sketchy, but the intent was clear: President Donald Trump announced a $12 billion public-private initiative to stockpile critical minerals for civilian use and rebuild supply chains in ways that seek to free the U.S. from China's dominance of critical minerals mining and processing.

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$12 Billion Plan Announced at White House Ceremony

In a White House signing ceremony February 2, President Donald Trump announced a $12 billion, public-private partnership to procure and stockpile critical minerals for civilian uses, such as for automotives, mobile devices, advanced manufacturing, aerospace applications and renewable energy, that complements similar U.S. strategic stockpiles for crude oil and military uses.

"For years, American businesses have risked running out of critical minerals during market disruptions," Trump said in an Oval Office ceremony where he signed an executive order creating the U.S. Strategic Critical Minerals Reserve, which he dubbed Project Vault. The plan will ensure that "American businesses and workers are never harmed by any shortage" of these minerals, he added.

Private companies reportedly have committed about $1.67 billion to the venture. That will be augmented by a $10 billion, 15-year loan from the U.S. Export-Import Bank (EXIM), its largest-ever loan. That loan was approved by the bank's board February 4.

The effort seeks to offer participating manufacturers a way to insulate their businesses from swings in prices for key materials without having to maintain their own stockpiles, according to a report in Bloomberg. Those types of swings can expose companies to massive volatility in key raw material inputs that wreak havoc on balance sheets.

The Bloomberg report offered a few specifics: "Companies that make an initial commitment to purchase materials at a specified inventory price later--and pay some up-front fees--will be able to present Project Vault with a shopping list of preferred materials they need."

It added: "A key element in the venture's design is that manufacturers who commit to buy a specified amount of materials at a set price also commit to repurchase the same amount at that same cost in the future. The administration sees that acting as a stabilizing mechanism, helping suppress volatility."

The project is part of the response to a move last year by China, the world's largest miner and processor of critical minerals, to slap export controls on some of those minerals and the magnets that use them. That reportedly spurred some U.S. manufacturers to dial back production, underscoring China's ability to engage in "mineral diplomacy."

For more on this, see November 20, 2025, article - IEA Connects Energy Security with National Security and June 9, 2025, article - IEA Flags Concerns Over Future Supply, Demand and Price of Strategic Minerals.

The White House was mum about the details of the project aside from posting a one-minute video of the president signing an executive order establishing the stockpile. It was seen as a complementary to the Strategic Petroleum Reserve, which can hold up to 714 million barrels of crude oil in caverns along the Gulf Coast, and the National Defense Stockpile, an expanding inventory of critical minerals needed for defense applications such as missile guidance and night-vision goggles.

News reports have said that a variety of companies are part of the effort, including but not limited to Clarios, GE Vernova, Western Digital, Boeing, Hartree Partners, Mercuria Americas and Traxys.

What are Critical Minerals and Rare Earth Elements?

"Critical minerals" is an umbrella term for about 60 minerals, including aluminum, copper, lead, magnesium, nickel, phosphate, silver and zinc, that are widely used in industrial applications, according to the U.S. Geological Survey. "Rare earth elements" (REE) is a critical minerals subgroup of 16 minerals that have unique magnetic, luminescent and electrochemical properties, which makes them essential for advanced technology, renewable energy, electric vehicles, batteries and defense technologies. China controls the overwhelming majority of mining and processing both critical elements and REEs.

Click on the image at right to see an infographic on critical minerals and REEs.

Project Vault Part of a Larger Effort

The February 2 announcement adds to and extends the Trump administration's efforts to either build, rebuild or strengthen domestic critical minerals supply chains, which have withered in recent years as Beijing's have significantly expanded.

The administration has announced several investments in private companies making minerals and magnets. For example, according to a report in The New York Times, the government made a $277 million direct funding commitment and up to $1.3 billion in loans to USA Rare Earth Incorporated, a mining and manufacturing concern, to help develop its supply chain for rare earth elements and magnets. Last summer, the Times added, the Pentagon took a $400 million stake in MP Materials, a financially beleaguered mining company.

Separate from the White House February 2 announcement, the U.S. last week announced "strategic partnerships" to strengthen strategic minerals supply chains with Mexico, the European Union and Japan. Those announcements were made at the February 4 meeting of the Critical Minerals Ministerial group, held in Washington D.C., according to statements from the U.S. Trade Representative (USTR).

Those USTR announcements also were light on details aside from a pledge that the nations were "taking significant steps towards increasing their economic security and national security by jointly enhancing resilience in critical minerals supply chains. They have announced their intention to expedite cooperative efforts for a mutually beneficial partnership."

The USTR announcement said the effort "could include exploring the development of coordinated trade policies and mechanisms, such as border-adjusted price floors, standards-based markets, price gap subsidies or offtake-agreements."

Separately, the U.S. has reached agreements with various other countries, reportedly including Malaysia and Australia, to cooperate on critical minerals.

Not Clear Which Minerals Will be Stockpiled

The White House, EXIM Bank and USTR were notably light on what minerals would be stockpiled. In announcing Project Vault, an EXIM Bank statement called it the U.S. Strategic Critical Minerals Reserve and said it would be "an independently governed public private partnership" that will procure and store essential raw materials in facilities across the United States.

In a statement, EXIM Chairman John Jovanovic said, "Project Vault is designed to support domestic manufacturers from supply shocks, support U.S. production and processing of critical raw materials, and strength America's critical minerals sector.

Joseph Govreau, IIR's vice president of research for the Metals & Minerals industry, commented, "Project Vault is the latest in what seems like a never-ending wave of policy moves, since the beginning of 2025, designed to bolster domestic critical mineral supply."

"Highlights of the policy shift supporting mining, refining, downstream processing and stockpiling of critical minerals include numerous executive orders, the creation of a Critical Minerals Czar, the addition of more than 50 mining projects to the FAST-41 permitting program, expansion of the critical minerals list from 50 to 60, DOE and DOD funding through grants and loans, taking direct ownership in several mining and downstream projects, and partnership with allies to shore up supply and support projects."

"To say it's been a busy year for critical minerals policy is an understatement."

Key Takeaways

• On February 2, President Trump announced a $12 billion plan to procure and store critical minerals for use in civilian applications.
• This stockpile complements U.S. strategic stockpiles of crude oil and critical minerals, including rare earth elements, for use in military applications.
• The new stockpile, dubbed Project Vault, will be funded by about $1.67 billion from private commercial entities and a $10 billion loan from the Export-Import Bank.
• The federal government has not released a list of which critical minerals or rare earth elements would be procured or stockpiled under the initiative.
• The effort is part of a broader Trump administration effort to reduce U.S. dependence on China, which is the world's largest miner and processer of critical minerals and rare earth elements.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).