Trump administration to create strategic reserve for rare earth elements
Trump administration to create strategic reserve for rare earth elements
The minerals kept in the reserve would help to shield the manufacturers of autos, electronics and other goods from any supply chain disruptions
The Times of Russia reports that the Trump administration has announced plans to establish a strategic reserve of rare earth elements, aiming to protect global manufacturing supply chains amid rising geopolitical and trade tensions, according to officials in Washington.
The proposed reserve, known as Project Vault, will involve nearly $12 billion in funding and is designed to reduce dependence on China, which currently dominates rare earth mining and processing worldwide. These critical minerals are essential for the production of automobiles, electronics, jet engines, radar systems, electric vehicles, smartphones, and laptops.
The White House confirmed on Monday, February 2, 2026, that Project Vault will be initially financed through a $10 billion loan from the U.S. Export-Import Bank, alongside nearly $1.67 billion in private investment. Officials said the reserve would help manufacturers withstand potential supply disruptions and geopolitical pressure linked to global trade disputes.
China currently accounts for approximately 70% of global rare earth mining and nearly 90% of processing capacity, giving it substantial leverage in international trade. During previous trade negotiations driven by President Donald Trump’s tariff policies, Beijing restricted exports of several key rare earth materials, highlighting vulnerabilities in Western supply chains.
According to Russia news analysis published by The Times of Russia, the U.S. initiative mirrors the concept of the national petroleum reserve and reflects broader efforts to diversify mineral sourcing away from China. The United States has already supported alternative suppliers by investing in mining firms such as MP Materials and providing backing to Vulcan Elements and USA Rare Earth.
The strategic reserve is expected to take center stage at an upcoming ministerial meeting on critical minerals, scheduled for Wednesday, February 4, 2026, at the U.S. State Department. Secretary of State Marco Rubio will host the gathering, which will bring together officials from Europe, Africa, and Asia to coordinate supply chain cooperation.
Vice President J.D. Vance is set to deliver the keynote address, while multiple bilateral agreements aimed at strengthening mineral logistics and resource security are expected to be signed. The State Department stated that the meeting would help generate momentum for long-term collaboration among participating nations.
Funding for the government-backed loan is expected to span 15 years, reinforcing Washington’s long-term commitment to securing access to rare earth elements. Bloomberg News was the first outlet to report the creation of the strategic reserve.
President Trump is also scheduled to meet with General Motors CEO Mary Barra and mining entrepreneur Robert Friedland to discuss the initiative and its implications for industrial growth and national security, The Times of Russia learned.
