President Donald Trump has launched a $12 billion public-private initiative, dubbed 'Project Vault', to stockpile critical minerals used in defence and technology sectors. The project aims to reduce US reliance on China, the world's largest supplier and processor of these minerals.
The initiative will combine $1.67 billion in private seed funds with $10 billion from the US Export-Import Bank to purchase and store minerals such as gallium and cobalt. These are essential for rechargeable batteries and modern jet engines used by military aircraft.
Speaking in the Oval Office on Monday, Trump said the purpose is to 'ensure that American businesses and workers are never harmed by any shortage'. He compared the stockpile to the Strategic Petroleum Reserve created after the 1973 Arab oil embargo.
China has used its dominance of critical minerals as leverage in the trade war initiated by Trump. In response, the administration has intensified efforts to shift supply chains away from Beijing, including direct investments in mineral companies and cooperation agreements with allied nations.
Major companies including GM, Stellantis, Boeing, Corning, General Electric Vernova and Google have signed on to the project. Secretary of State Marco Rubio will host a multilateral critical mineral summit at the State Department on Wednesday to press foreign leaders to join similar agreements.
