What's happened
On February 2, 2026, the US government announced Project Vault, a $12 billion strategic stockpile of critical minerals funded by a $10 billion loan from the US Export-Import Bank and $1.67 billion in private capital. The initiative aims to reduce US dependence on China’s dominance in rare earth minerals, securing vital materials for manufacturing vehicles, electronics, and defense technologies. Over 55 countries are collaborating to diversify supply chains, while Japan pursues deep-sea mining innovations.
What's behind the headline?
Strategic Shift in Global Mineral Supply Chains
The launch of Project Vault marks a decisive US effort to counter China's near-monopoly on rare earth elements and critical minerals. By combining substantial public and private funding, the US aims to create a buffer against supply disruptions that previously threatened key industries such as automotive, defense, and technology manufacturing.
Geopolitical and Economic Implications
This initiative is not merely about stockpiling but about reshaping global supply chains through alliances with over 50 countries, including G7 members and partners in Asia and Oceania. The US is leveraging diplomatic and economic tools to build a resilient, diversified network that reduces reliance on China’s supply dominance.
Domestic Industrial Revitalization
Investments in companies like USA Rare Earth, MP Materials, and Lithium Americas signal a broader industrial policy to revive domestic mining and processing capabilities. This will create jobs, stimulate technological innovation, and enhance national security by securing critical inputs for emerging technologies such as AI, electric vehicles, and renewable energy.
Challenges and Outlook
Despite these efforts, the US faces environmental, technical, and economic hurdles in scaling up domestic production. Recycling innovations, like those developed by a French-American scientist recovering rare earths from neon bulbs, offer promising complementary solutions. Japan’s pioneering deep-sea mining initiatives also highlight the global race to secure alternative sources.
Conclusion
Project Vault and allied international cooperation will fundamentally alter the critical minerals landscape. The US is positioning itself to mitigate geopolitical risks, stabilize supply chains, and foster a competitive industrial base. This will have lasting impacts on global trade dynamics and technological development.
What the papers say
The New York Times detailed the structure of Project Vault, noting it combines $1.67 billion in private funds with a $10 billion loan from the US Export-Import Bank, aiming to shield manufacturers from supply shocks. It highlighted participation from major companies like General Motors and Google, emphasizing the urgency after China’s export curbs last year. The Guardian reported President Trump’s announcement of the reserve, comparing it to the Strategic Petroleum Reserve and underscoring the $12 billion funding and bipartisan support. Al Jazeera provided context on the ministerial meeting hosted by Secretary of State Marco Rubio, where over 50 countries discussed diversifying critical mineral supply chains and the US’s reluctance to set minimum prices for minerals. France 24 highlighted Japan’s efforts to innovate with deep-sea mud mining, while also noting China’s dominant position due to cheap labor and lax regulations. The Independent and AP News focused on the US Commerce Department’s $1.6 billion investment in USA Rare Earth, illustrating the administration’s strategy of acquiring stakes in domestic mining companies to reduce foreign dependence. These sources collectively reveal a multifaceted US strategy combining diplomacy, investment, and innovation to counter China’s dominance and secure critical mineral supplies.
How we got here
China controls about 70% of global rare earth mining and 90% of processing, creating a strategic vulnerability for the US and its allies. Trade tensions and export restrictions by China in 2025 exposed this dependence, prompting the US to invest heavily in domestic mining, processing, and stockpiling. The Trump administration has pursued international partnerships and equity stakes in mining firms to secure supply chains.
Go deeper
- How will Project Vault reduce US dependence on China?
- What role do private companies play in the US critical minerals strategy?
- How are other countries like Japan contributing to diversifying rare earth supplies?
Common question
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Why Is the US Building a Critical Minerals Stockpile?
The US is ramping up efforts to secure its supply of vital minerals like cobalt and gallium. This move aims to reduce dependence on foreign sources, especially China, which dominates global processing. But why is this so important now, and what does it mean for the future of US tech and military industries? Below, we explore the key reasons behind this strategic push and what it could mean for you.
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Why Is the US Building a $12B Critical Minerals Reserve?
The US is investing heavily in securing its supply of critical minerals, especially rare earth elements vital for technology, defense, and green energy. But why exactly is this happening now, and what does it mean for global supply chains? Below, we explore the reasons behind the US's strategic move, the key players involved, and the potential impacts on the world stage.
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How Do Resource Shortages and Geopolitical Tensions Impact Global Stability?
Resource shortages and geopolitical rivalries are shaping the future of international relations. Countries are competing for vital materials like rare earth minerals, which are essential for technology, defense, and green energy. This competition influences global stability, trade policies, and diplomatic relations. Curious about how these tensions unfold and what strategies nations are adopting? Keep reading to find out more about the current landscape of resource security and geopolitical power plays.
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