Strategic initiative combines $1.67 billion in private capital with $10 billion Export-Import Bank loan to address China’s dominance over global mineral supply
President Donald Trump has announced a major strategic initiative designed to address a critical vulnerability in US industrial supply chains. On February 2, Trump unveiled “Project Vault,” a new critical minerals stockpile seeded with $1.67 billion in private capital and a $10 billion loan from the US Export-Import Bank. The initiative represents a comprehensive approach to insulating American industries from market disruptions caused by global supply chain concentrations particularly those controlled by China.
The announcement comes at a pivotal moment in global trade dynamics. In 2025, Beijing announced a sweeping rule change that would subject all sales of critical minerals mined or processed in China to review and approval from Chinese authorities. That single policy change has the potential to disrupt as much as 90 percent of global critical minerals supply, given China’s dominant position in mining and processing these essential materials.
“We don’t want to ever go through what we went through a year ago,” Trump said at a press briefing at the Oval Office, referencing the supply chain disruptions American industries experienced when China implemented an earlier version of its licensing restrictions. The comment underscores the urgency driving Project Vault’s creation and the real economic damage that supply chain vulnerabilities can inflict.
The China Supply Chain Threat
Understanding Project Vault requires understanding the threat it’s designed to address. When Beijing announced a much smaller-scale version of critical minerals licensing restrictions earlier in 2025, the consequences were immediate and severe. Within weeks of implementation, some automotive parts manufacturers were forced to shut down entire production lines due to mineral supply disruptions. The economic impact extended across multiple industries dependent on critical minerals for manufacturing.
That early 2025 experience provided a preview of what could happen if China fully implements its announced rule change. With potential control over up to 90 percent of global critical minerals supply, Beijing would essentially hold veto power over American industrial production across multiple sectors. The minerals in question rare earths, cobalt, lithium, and others are essential to everything from electronics to renewable energy infrastructure to defense systems.
After a US-China meeting in October 2025, Beijing agreed to pause its new licensing regime for one year. That agreement provides a critical window the timeframe Trump says the United States will use to develop alternative reliable sources of critical minerals. Project Vault represents the government’s strategic response to that deadline.
The Strategic Stockpile Approach
The Pentagon already maintains a critical minerals stockpile kept in six locations across the country, reserved for national emergencies. Project Vault represents something different: a private-sector-led initiative backed by government financing to build commercial-scale reserves designed to prevent supply disruptions before they reach emergency levels.
The financing structure is noteworthy. The $1.67 billion in private capital signals genuine private sector confidence in the initiative. Private investors are willing to put substantial capital at risk, suggesting they believe Project Vault addresses a real market need. The $10 billion Export-Import Bank loan provides government backing without requiring direct government appropriation, structuring the initiative as a partnership between private enterprise and public finance.
This approach reflects a broader strategy: instead of government building and managing the stockpile itself, the initiative leverages private sector expertise, capital, and market discipline while providing government financing to make the economics work. It’s a model designed to create sustainable, market-responsive supply chain resilience rather than static government warehouses.
The Supply Chain Security Imperative
Project Vault addresses what has become a critical national security concern. Supply chain vulnerabilities don’t just affect commerce they affect defense production, infrastructure development, and technological innovation. The experience of 2025 demonstrated that supply disruptions can cascade through the economy rapidly, forcing production shutdowns and potentially threatening both economic and national security.
Trump’s framing emphasizes the experience of the previous year. The disruptions were real, the damage was measurable, and the lesson was clear: American industries cannot depend on supply chains controlled by strategic competitors. Project Vault represents the strategic response to that lesson building domestic and allied sources of critical minerals to reduce dependence on single-source suppliers.
The one-year window provided by China’s pause gives the initiative time to develop. Whether Project Vault succeeds will depend on identifying viable alternative sources of critical minerals and establishing commercial relationships capable of supplying American industries at competitive prices. If successful, it could fundamentally reshape global critical minerals markets by reducing China’s leverage over American industries.
