Trump Launches $12 Billion Project Vault, Strengthening Rare Earth and Critical Mineral Supply Chain

Key Highlights

• United States launches $12B civilian mineral stockpile under Project Vault
• Backed by $10B Export Import Bank loan plus nearly $2B private capital
• Targets rare earths, cobalt, gallium and battery metals
• North American and Australian miners positioned as key alternative suppliers
• Analysts say move could stabilize prices and reshape global supply chains

For years, critical minerals have quietly powered the modern world. They sit inside smartphones, electric vehicles, jet engines and satellites. Most consumers never think about them until supply chains break.

This week, Washington decided it no longer wants to be caught off guard.

The United States has unveiled Project Vault, a $12 billion civilian stockpile of rare earths and critical minerals aimed at shielding American industry from sudden shortages and reducing dependence on China. The initiative, announced by US President, Donald Trump at the White House, marks the first time the country has built a strategic mineral reserve specifically for the private sector rather than defence alone.

In simple terms, the government is treating minerals the way it once treated oil. Store them when available. Release them when supply tightens.

That shift is already rippling through markets. US Rare Earth stocks jumped yesterday after Trump's announcement on Project Vault [post the announcement - Shares in Critical Metals were up 6.4%, USA Rare Earth gained 4.3%, and MP Materials gained 4%. Energy Fuels gained 5.6%, Idaho Strategic Resources surged 6.2%, while NioCorp Developments rose 3.7%.

Introducing Project Vault, a critical mineral stockpile for American businesses, unaffected by market disruptions. 💎🇺🇸 pic.twitter.com/Hd14JxujdP

— The White House (@WhiteHouse) February 2, 2026

What exactly is Project Vault?

Project Vault is structured as a public private partnership. It combines a $10 billion loan from the US Export Import Bank with nearly $2 billion in private seed capital.

Instead of just buying and warehousing materials, the program works like an inventory insurance policy.

Participating companies commit upfront to purchase minerals later at a fixed price. They pay carrying and storage costs. Project Vault then buys and stores the materials on their behalf. In a disruption, those companies can access the stockpile.

Speaking at the announcement, Trump framed it as a business continuity measure.

“For years, American businesses have risked running out of critical minerals during market disruptions. Today, we’re launching what will be known as Project Vault to ensure that American businesses and workers are never harmed by any shortage,” he said.

More than a dozen industrial giants have already signed on, including General Motors, Stellantis, Boeing, Corning, GE Vernova, and Google.

Their presence underlines one reality. This is not a niche policy. It is aimed squarely at the backbone of the modern economy.

Why minerals suddenly matter so much

Rare earths and critical minerals sound technical, but their uses are surprisingly everyday.

Gallium goes into semiconductors. Cobalt is used in batteries and jet engines. Rare earth magnets power EV motors, wind turbines and defence systems.

The challenge is concentration risk.

According to data cited by the International Energy Agency, China controls roughly 60 percent of rare earth mining and more than 90 percent of magnet manufacturing. When Beijing tightens export controls, Western manufacturers feel the squeeze almost immediately.

Last year’s restrictions forced some US producers to slow output. That experience appears to have accelerated policy action.

From an industry standpoint, the announcement was welcomed.

Wade Senti, president of magnet maker Advanced Magnet Lab, told CNBC it is critical to see the US taking decisive steps to shore up minerals and rare earths, adding that what matters next is turning those materials into permanent magnets that power future technologies.

It is a practical view. Stockpiles are only useful if supply chains downstream are also local.

Inside a cleanroom | Source: IEEE Spectrum | Cleanrooms are tightly controlled environments that remove particles, control airflow and humidity, and enforce strict gowning and protocols so sensitive manufacturing (semiconductors, medical devices, optics) can avoid contamination; key controls are HEPA/ULPA filtration, unidirectional airflow, and personnel procedures.

Immediate market reaction

The policy has already shown up in stock prices.

US listed rare earth miners rallied in early trading. Shares of MP Materials, Energy Fuels, Idaho Strategic Resources, and NioCorp Developments all moved higher after the announcement as traders priced in stronger domestic demand and longer term policy support.

It signals that governments are no longer passive observers. They are becoming buyers of last resort.

Why this matters for Australia, Japan and Malasia

Processing plant at a lithium mine in Western Australia. Picture by Jason Bennee 

While the project is American, its implications are global, especially for Australia.

Canberra has long pitched itself as a reliable alternative supplier of lithium, rare earths and other critical materials. The US already has cooperation agreements with Australia, Japan and Malaysia to diversify sourcing.

For Australian producers, Project Vault effectively creates a guaranteed customer with deep pockets.

Instead of relying solely on volatile spot markets, miners can potentially secure long term offtake agreements tied to government backed demand. That improves financing prospects for new projects and processing plants.

In practical terms, it could accelerate development across Western Australia and the Northern Territory, where many rare earth and battery metal projects sit in early stages.

For North American and Australian companies, the message is clear. Policy risk has turned into policy support.

Key trends emerging

Several themes are becoming visible.

First, minerals are being treated as strategic assets, similar to energy security in the past.

Second, governments are stepping into markets directly through loans, stockpiles and partnerships.

Third, supply chains are regionalising. North America and allies such as Australia are working to build their own ecosystems from mine to magnet to motor.

Finally, price volatility may ease over time. Because companies agree to repurchase materials at fixed inventory prices, Project Vault could smooth extreme swings that often plague rare earth markets.

The bigger picture

If oil defined the 20th century, critical minerals may define the 21st.

Project Vault suggests Washington believes supply security is as important as innovation itself. Chips, EVs and clean energy targets all depend on materials that cannot be substituted easily.

For North American and Australian miners, that translates into something rare in commodities markets, Visibility.

A government backed buyer. Long term demand. Strategic importance.

And for everyday consumers, it means a quieter benefit. Fewer disruptions. More stable production. The devices and vehicles they rely on simply keep coming.

Sometimes the most important infrastructure is the kind you never see.