Trump announces creation of $12 billion strategic critical mineral reserve

The US will launch a strategic critical minerals reserve to boost American industry and reduce reliance on foreign trading partners for the materials, President Donald Trump announced Feb. 2.

The reserve, dubbed "Project Vault," will serve as the first-ever stockpile of critical minerals "to ensure that American businesses and workers are never harmed by any shortage," Trump said.

The Trump administration has intensified efforts to strengthen the domestic critical minerals supply chain, including taking equity stakes in private companies and forming critical minerals deals with trading partners.

The reserve is to combine $10 billion in US export-import bank financing with $2 billion in private sector financing.

"We even expect the American taxpayer to make a profit from the interest on the loan used to start the Project Vault," Trump said.

He compared the reserve to the US Strategic Petroleum Reserve, established in 1975 to create an emergency stockpile of crude oil for national defense. Trump stressed that the critical mineral reserve's purpose is to boost American industry.

Trump said his administration has taken steps to make sure the US has all critical minerals and rare earths needed, highlighting investments in mining projects and expediting federal permitting requirements.

"Having a resilient supply chain is critical for our nation and critical for all industries, especially the auto industry," said General Motors CEO Mary Barra, who joined Trump in the Oval Office as he announced the reserve.