Trump Launches $12 Billion Critical Mineral Reserve Plan

Summary

The Trump administration is launching ‘Project Vault,’ a $12 billion plan to create a private-sector commercial stockpile of critical minerals like gallium and cobalt.Wallstreetcn The program aims to hedge supply chain risks for US manufacturers and reduce reliance on foreign countries, particularly China. It will be funded through a combination of $10 billion in loans from the US Export-Import Bank and private capital.Wallstreetcn The announcement led to an immediate rise in the stock prices of companies like US Rare Earth.Wallstreetcn

Impact Analysis

So they’re finally putting real money behind the supply chain security talk. This $12 billion ‘Project Vault’ isn’t just a headline; it’s the creation of a new, permanent buyer for critical minerals.Wallstreetcn The structure is key—using EXIM loans to leverage private capital means this is designed to be a market-based mechanism, not just a one-off government purchase. It’s a direct move to de-risk US manufacturing from its dependency on China for rare earths and other strategic metals.

The market’s initial reaction, sending US Rare Earth stock up, is the obvious first-order effect.Wallstreetcn But the real play is longer-term. This provides a structural tailwind for any non-Chinese producer of these minerals. It essentially underwrites demand, making development projects far more bankable. We should be building a basket of US and allied-nation miners. This is a multi-year theme, not a one-day trade.