Report: Trump plans to invest $12 billion to stockpile critical minerals

U.S. President Donald Trump is preparing to launch a strategic critical minerals reserve plan totaling $12 billion, aiming to protect American manufacturers from supply chain shocks and further strengthen national industrial security by establishing a commercial inventory mechanism.

According to media reports, this plan, known as "Project Vault," will use $10 billion in loans from the U.S. Export-Import Bank, combined with $1.67 billion in private capital, to purchase and store minerals for automakers, technology companies, and other manufacturing giants. This will be the first such reserve project led by the U.S. private sector, not only unprecedented in scale, but operating similarly to the country's Strategic Petroleum Reserve.

The plan has already attracted more than a dozen industry giants including General Motors, Google's parent company Alphabet, and Boeing. Trump is scheduled to meet with GM CEO Mary Barra and mining billionaire Robert Friedland on Monday, meanwhile the U.S. Export-Import Bank board will vote on approving this record-setting 15-year loan authorization the same day.

Affected by this news, the market expects the plan will provide a buffer against volatility in related commodity prices and directly benefit the U.S. domestic minerals supply chain.

U.S. rare earth stocks rose in pre-market trading on Monday, including: American Rare Earths up 6.11%, United States Antimony Corporation up 5.3%, Critical Metals up 8.4%, MP Materials up 4.6%, Ramaco Resources up 3.7%, NioCorp up 4.6%, Trilogy Metals up 0.8%.

Pioneering Private Sector Reserve Mechanism

Project Vault’s core structure combines public credit and private investment. The $10 billion loan planned by the U.S. Export-Import Bank is more than twice the size of the bank’s second largest historic transaction. In addition to public funds, the project has introduced $1.67 billion in private capital. According to senior government officials, the financing stage saw oversubscription as investors value manufacturers’ creditworthiness, long-term commitments, and support from the U.S. export credit agency.

Although the full list of institutional investors has not yet been disclosed, this financing structure establishes the first minerals reserves for U.S. private sector needs. Previously, although the U.S. had national critical minerals reserves serving the defense industry base, it has always lacked a corresponding mechanism for civilian demand.

Operating Model and Inventory Management

The reserve will focus on key minerals like gallium and cobalt used in iPhones, batteries, and jet engines, covering rare earths and other strategic elements with highly volatile prices. Three commodity traders—Hartree Partners LP, Traxys North America LLC, and Mercuria Energy Group—have signed agreements to serve as procurement agents for sourcing raw materials.

Operationally, participating manufacturers must pay an upfront fee and are responsible for holding costs related to loan interest and inventory. Companies can submit lists of preferred materials needed to Project Vault. In the event of supply disruptions, companies can draw fully from inventory, but must replenish it afterward. The mechanism also has a stabilizer: manufacturers committing to buying a certain quantity of materials at a set price must also promise to repurchase the same quantity at the same cost in the future to stabilize market volatility.

Hedging Supply Chain Risks and Geopolitical Dynamics

Project Vault is designed to help companies like Stellantis NV, Corning Inc., and GE Vernova Inc. hedge against the impact of raw material price swings on their balance sheets. Previously, the surging nickel price after the Russia-Ukraine conflict highlighted supply chain vulnerabilities.

The plan is also part of the Trump administration’s direct investment in domestic mining companies and efforts to boost local rare earth production and processing capabilities. Meanwhile, the U.S. government has signed cooperation agreements with countries including Australia, Japan, and Malaysia, and plans to promote more such accords at a multilateral summit in Washington on Wednesday.

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