US President Donald Trump speaks in the Oval Office at the White House on February 2, 2026, the day he announced the creation of the critical mineral reserve. Image Credit: Reuters
The Trump administration plans to allocate nearly $12 billion to create a strategic reserve of rare earth elements, a stockpile that could counter China’s ability to use its dominance of the hard-to-process metals as leverage in trade negotiations.
The White House on Monday (February 2, 2026) confirmed the launch of “Project Vault,” which will initially be funded by a $10 billion loan from the US Export-Import Bank and about $1.67 billion in private capital. Minerals held in reserve help protect manufacturers of autos, electronics and other goods from any supply chain disruptions.
During trade talks last year spurred by President Donald Trump’s tariffs, the Chinese government blocked exports of rare earths needed for jet engines, radar systems, electric vehicles, laptops and phones.
China represents 70% of the world’s rare earth mining and 90% of global rare earth processing. This choked off the sector, leading the US to nurture alternative sources of the element by creating a national reserve-like stockpile for petroleum.
The strategic reserve is expected to be a key element of a ministerial meeting on critical minerals to be hosted by Secretary of State Marco Rubio at the State Department on Wednesday (February 4, 2026).
Vice President JD Vance plans to deliver a keynote address at the meeting, which officials from several dozen European, African and Asian countries plan to attend. The meeting is expected to sign several bilateral agreements to improve and coordinate supply chain logistics.
In its statement announcing the meeting, the State Department said the meeting would “create momentum for cooperation” among participants to gain access to rare earths.
A government-backed loan fund has a reserve tenure of 15 years. The US government has previously taken a stake in rare earth miners MP Materials, as well as providing financial support to Vulcan Elements and USA Rare Earth Companies.
Bloomberg News He was the first to report the creation of a strategic reserve of rare earths.
Trump will meet with General Motors CEO Mary Barra and mining billionaire Robert Friedland on Monday (January 2, 2026).
Published – February 03, 2026 at 05:33 am IST