Project Vault: Trump Launches $12B Strategic Minerals Reserve
The largest critical minerals initiative in U.S. history, designed to break China's chokehold on the supply chain.
President Trump announced Project Vault from the Oval Office, pooling $2B in private capital with a $10B Export-Import Bank loan to create a first-of-its-kind civilian strategic minerals reserve. GM CEO Mary Barra and mining billionaire Robert Friedland joined the announcement. More than a dozen companies, including GM, Boeing, Stellantis, Google, GE Vernova, and Corning, have signed on. Commodity traders Mercuria, Hartree Partners, and Traxys will handle procurement. Interior Secretary Doug Burgum says 11 allied nations will be announced this week.
February 3, 2026 · White House, Washington D.C.
$12B
Project Vault Value
$10B EXIM + $2B private
90%
China's Rare Earth Processing
+ 90% magnet manufacturing
60
Critical Minerals on USGS List
2025 list added 10 new minerals
15yr
EXIM Loan Term
Largest EXIM loan ever
Funding Structure
Project Vault is modeled after the Strategic Petroleum Reserve (created in the 1970s after the Arab oil embargo) but adapted for the critical minerals age. Trump called it "a stockpile of critical minerals for American industry, so we don't have any problems."
$10B
U.S. Export-Import Bank
15-year loan, largest EXIM loan ever
$2B
Private Capital
Oversubscribed, strong investor demand
$12B
Total Value
Procurement, storage & management
"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."
: President Donald Trump, Oval Office, Feb. 3, 2026
How It Works
Unlike a traditional government stockpile, Project Vault operates as a private-sector buffer stock with government backing. The mechanics:
• Draw-down rights: Companies can draw their allotted minerals as long as they replenish them. Full access during major supply disruptions.
• Price stabilization: Manufacturers commit to buying set quantities at fixed prices and agree to repurchase at the same cost, dampening market volatility.
• Commodity traders: Mercuria Energy Group, Hartree Partners, and Traxys North America will handle physical procurement and logistics.
• Government profit: Trump said he expects the government will make money from the EXIM loan structure.
Ivanhoe Mines & Kipushi Supply
Mining billionaire Robert Friedland, founder of Ivanhoe Mines, was at the White House for the announcement. Ivanhoe, alongside state-owned Gécamines and commodity trader Mercuria, is in advanced discussions to supply the U.S. with critical minerals from the Kipushi Mine in the Democratic Republic of Congo.
Kipushi will supply zinc concentrate containing germanium and gallium: two minerals China has already weaponized through export controls. The mine is expected to produce 240,000–290,000 metric tons of zinc concentrate in 2026.
Why germanium and gallium matter: China imposed export controls on these minerals in 2023, then expanded restrictions in 2025 during the tariff war. These are essential for semiconductors, fiber optics, solar cells, and military infrared systems. The U.S. has zero domestic production of germanium and near-zero for gallium.
Industry Partners Signed On
Project Vault is backed by an unprecedented coalition spanning automotive, aerospace, energy, and tech:
General Motors
Automotive
Hartree Partners
Commodities
Diplomacy: The Allied Minerals Coalition
Secretary of State Marco Rubio will host a Critical Minerals Ministerial at the State Department on Wednesday, Feb. 5. VP JD Vance will deliver the keynote. Officials from several dozen European, African, and Asian nations will attend. Interior Secretary Doug Burgum confirmed 11 additional allied countries will be announced this week.
The meeting is expected to include the signing of bilateral agreements to improve and coordinate supply chain logistics: building an allied mineral network to counter China's dominance.
China controls the bottleneck. While minerals are mined globally, China processes the overwhelming majority, meaning even minerals mined in Australia, Africa, or South America often flow through Chinese refineries before reaching manufacturers. In 2025, China weaponized this leverage by restricting rare earth exports during the tariff war.
Used in: EV motors, wind turbine generators, jet engines, smartphones, MRI machines, missile guidance
Used in: Every lithium-ion battery anode, nuclear reactors, steel production
Used in: EV batteries, jet engine superalloys, medical implants
Used in: EV batteries, grid storage, laptops, medical devices
China, export controls imposed
Used in: Semiconductors, 5G, LEDs, solar cells, radar. China imposed export controls July 2023
China, export controls imposed
Used in: Fiber optics, infrared optics (military), solar cells. Export controls July 2023
Used in: Ammunition, flame retardants, batteries, military applications. Export controls Aug 2024
The Critical Minerals Supply Chain
Mining
DRC, Australia, Chile, China, US
→
Processing & Refining
China dominates 60-90%
→
Component Mfg
Batteries, magnets, alloys
→
End Products
EVs, defense, electronics, energy
The bottleneck is processing, not mining. The US and allies mine significant quantities of rare earths, lithium, and cobalt, but most raw material flows to China for refining. Project Vault addresses the stockpile problem; the bigger structural challenge is building domestic processing capacity. That's where projects like MP Materials, Lynas, and Redwood Materials come in.
Only fully integrated rare earth mine-to-magnet operation in the Western Hemisphere. Stopped exporting concentrate to China in Q3 2025. $400M DOD investment for Mountain Pass expansion + Texas magnet factory (commissioning mid-2026). Government guaranteed $110/kg NdPr purchase for 10 years.
Largest known lithium deposit in North America and one of the largest in the world. Construction began March 2023. Phase 1 targets enough lithium for ~800,000 EVs/year. GM invested $650M for exclusive Phase 1 offtake. Controversial, facing legal challenges from indigenous groups and environmental concerns.
Australian company building the first U.S. rare earth processing plant outside of China's supply chain. Mines in Western Australia (Mt Weld), processes in Malaysia, building separation facility in Texas. Only non-Chinese rare earth producer at scale globally. Projecting 53% production growth despite operational disruptions.
U.S. government took a 10% equity stake in Jan 2026, a $1.6B deal representing unprecedented direct federal investment in domestic rare earth capacity. Building a fully integrated mine-to-magnet platform to close the critical supply gap for defense and civilian industries.
Historically significant location: the Carolina Tin-Spodumene Belt was the world's primary lithium source before Chile/Australia. Permitting has faced community opposition in Gaston County. Tennessee hydroxide processing plant also in development.
World's largest lithium producer. Silver Peak, Nevada is the only active lithium brine operation in the U.S. Reopening the historic Kings Mountain mine in North Carolina. Global operations span Chile (Atacama), Australia (Greenbushes), and China processing. Major beneficiary of IRA 45X credits.
Founded by Tesla co-founder JB Straubel. Pioneering closed-loop battery recycling that recovers 95%+ of lithium, cobalt, nickel, copper from spent batteries. Now pivoting to also repurpose used EV batteries for grid storage (partnership with GM). Raised $425M Series E in Jan 2026. Launched in-store battery collection bins.
Only conventional uranium mill in the U.S. Now diversifying into rare earth processing, producing separated rare earth oxides from monazite sands. Also processes vanadium. Multi-mineral approach could be a model for diversified domestic critical mineral production.
Feb 3, 2026
Project Vault: Strategic Minerals Reserve
$12B civilian critical minerals stockpile ($10B EXIM loan + $2B private). First-ever private-sector buffer stock with government backing. Companies draw minerals during supply disruptions. 15+ companies signed on including GM, Boeing, Google.
Today
Jan 2026
USA Rare Earth: $1.6B Government Equity Stake
U.S. government purchased a 10% stake in USA Rare Earth for $1.6B. unprecedented direct federal investment in a domestic rare earth company. Signals intent to build a complete mine-to-magnet supply chain on American soil.
New
2025-2026
One Big Beautiful Bill: $7.5B for Critical Minerals
$2B to expand National Defense Stockpile by 2027. $5B for supply chain investments. $500M Pentagon credit program for private projects. Also adds metallurgical coal as a "critical mineral" for 45X credits. Phases out 45X credits for other minerals after 2029.
Legislation
Nov 2025
2025 Critical Minerals List: 60 Minerals
USGS expanded the critical minerals list to 60 (from 50), adding copper, uranium, silicon, silver, phosphate, boron, metallurgical coal, and others. Analyzed 84 total minerals for supply chain risk. DOD, DOE, and USDA all recommended additions.
Active
Nov 2025
China Suspends Export Controls (Temporary)
China suspended its ban on gallium, germanium, antimony, and superhard material exports to the U.S.. but only until November 27, 2026. The "pause" came during trade talks. Controls can snap back at any time, underscoring why Project Vault exists.
Suspended until Nov 2026
Jan 2025
EO 14154: "Unleashing American Energy"
Trump's Day 1 executive order directed the Secretary of War to review the National Defense Stockpile to "ensure a robust supply of critical minerals in event of future shortfall." Set the stage for Project Vault and expanded DOD stockpiling.
Active
2022 (Ongoing)
IRA Section 45X. Advanced Manufacturing Production Credit
10% tax credit for domestic production of critical minerals to specified purity levels. Applies to lithium, cobalt, nickel, graphite, and other battery minerals. Major driver of new U.S. processing investment. OBBB phases out most mineral credits after 2029 but adds metallurgical coal.
Active, phaseout coming
2025
Pentagon $1B+ Critical Minerals Stockpile Campaign
DOD accelerating acquisition of up to $1B in strategic minerals for the National Defense Stockpile, separate from Project Vault (which is civilian). Focus on rare earths, tungsten, antimony, and other defense-critical materials. MP Materials received $400M DOD investment.
Active
Every clean energy technology depends on critical minerals. The energy transition is a minerals transition. Without secure supply chains, solar panels don't get built, batteries don't get made, and the grid doesn't get upgraded.
Silicon
Silver
Copper
Gallium
Germanium
Tellurium
China produces ~80% of the world's polysilicon for solar. A typical solar panel uses 20g of silver and significant copper wiring. Thin-film panels need gallium, germanium, and tellurium, all subject to Chinese supply risk.
Lithium
Cobalt
Nickel
Graphite
Manganese
Phosphate
Every EV battery needs ~8-12 kg of lithium, 5-10 kg of cobalt (NMC), and ~50 kg of graphite for the anode. Grid-scale storage multiplies demand. China refines 65% of lithium and 80% of graphite. LFP batteries use phosphate instead of cobalt but still need lithium.
Rare Earths (NdFeB)
Copper
Steel (Iron)
Zinc
Offshore wind turbines use powerful neodymium-iron-boron permanent magnets, each requiring ~600 kg of rare earth elements. China controls 90% of magnet production. A single offshore turbine also needs ~5+ tons of copper. No rare earths = no direct-drive generators.
Uranium
Graphite
Zirconium
Hafnium
Uranium was added to the 2025 critical minerals list. Russia enriches ~44% of the world's uranium fuel. U.S. imports 95% of its uranium. SMRs and advanced reactors need HALEU fuel. Currently only Russia and China currently produce it at scale. Graphite used in some reactor designs.
Copper
Aluminum
Silicon Steel
Rare Earths
Transformer cores need grain-oriented electrical steel (silicon steel). The U.S. faces a transformer shortage with 2-3 year wait times. AI data centers, electrification, and renewable interconnection all need massive grid expansion. Copper demand for grid infrastructure expected to double by 2040.
Lithium
Cobalt
Nickel
Graphite
Rare Earths
Copper
Manganese
An EV uses 6× more minerals than a conventional car. Battery (Li, Co, Ni, graphite) + motor (rare earth magnets) + wiring (copper (3-4x more than ICE vehicles)). This is why GM, Stellantis, and others signed up for Project Vault, supply security is existential for automakers.
Every spent battery is an urban mine. As the first wave of EV batteries reaches end-of-life and consumer electronics waste grows, recycling becomes a domestic mineral source with no geopolitics, no mining permits, no 10-year development timelines.
Redwood Materials
95%+ recovery rate: Li, Co, Ni, Cu
Founded by Tesla co-founder JB Straubel. Largest battery recycler in North America. Carson City, NV and Charleston, SC facilities. Target: 100 GWh of battery materials per year. Now repurposing used EV packs for grid storage (GM partnership). Raised $425M Series E (Jan 2026). $2B+ DOE loan for expansion. Recently launched in-store battery collection bins in San Francisco.
Li-Cycle
Spoke-and-hub model, distributed collection
Canadian company building a "spoke-and-hub" recycling network. Spokes (collection points) feed a central processing hub in Rochester, NY. Recovers lithium, cobalt, nickel, manganese, graphite, and copper from all battery chemistries. Partnerships with Ultium Cells (GM/LG) and Glencore. Hub operations ramping through 2026.
The Closed-Loop Vision
Reduce import dependence by 30-50% by 2040
The IEA estimates battery recycling could supply 10% of lithium and 15% of cobalt demand by 2030, scaling to 30-50% by 2040 as more batteries reach end-of-life. Combined with domestic mining and allied supply chains, recycling could dramatically reduce reliance on adversarial nations. The Section 45X credit applies to recycled critical minerals at the same rate as mined ones, leveling the playing field.
Second Life: Batteries → Grid Storage
50%+ capacity remaining in "spent" EV packs
Many EV batteries retain 50-70% capacity when retired from vehicles. Instead of immediate recycling, companies like Redwood Materials, GM, and B2U Storage Solutions are deploying them as grid-scale storage, powering data centers, peak shaving, and supporting renewable intermittency. Only when capacity drops below ~40% are they fully recycled. This "cascade" model maximizes the mineral value over a 20+ year lifecycle.