Trump Wants to Reduce US Dependence on Chinese Minerals
Rare-earth minerals, essential for technologies such as smartphones, electric vehicles, and advanced weapons systems, are heavily controlled by China, which handles over 90% of global rare-earth refining and nearly all permanent magnet production. This dominance gives Beijing substantial influence over global supply chains crucial to both industry and defense.
Trump’s plan, called Project Vault, will combine private investment with a $10 billion loan from the US Export-Import Bank to acquire and store critical minerals. The stockpile is designed to protect manufacturers from price fluctuations and potential supply disruptions. Over a dozen major companies, including General Motors, Boeing, and Google, are reported to have joined the initiative.
In April 2025, China imposed export controls on certain rare-earth elements used in military applications, citing national security concerns, and later tightened these controls further with stricter licensing and extraterritorial rules affecting US-linked exports. In October, following a meeting between Trump and Chinese President Xi Jinping in South Korea, China temporarily suspended the latest controls for one year in exchange for reciprocal US tariff reductions.
Despite the temporary reprieve, Washington has intensified efforts to diversify supply chains, signing deals with countries such as Australia, Japan, and Ukraine, while moving forward with Project Vault to ensure a more secure, domestically backed supply of strategic minerals.
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