US Launches $12 Billion Rare Earth Reserve

The Trump administration has announced plans to spend nearly $12 billion to create a strategic reserve of rare earth elements. These are important metals used in electronics, autos, and other high-tech products. The reserve aims to reduce reliance on China, which dominates the global supply of these hard-to-process minerals and could use this control in trade negotiations.

The White House confirmed on Monday, February 2, 2026, that the initiative, called “Project Vault,” has officially begun. The project will be funded with a $10 billion loan from the U.S. Export-Import Bank and around $1.67 billion in private investment.

The reserve will help protect American manufacturers from disruptions in the supply of rare earth metals. It is expected to benefit industries such as automobiles, electronics, and other high-tech sectors, ensuring that production continues smoothly even if global supplies are affected.

This move is part of the U.S. government’s broader effort to strengthen domestic supply chains and reduce economic risks associated with dependency on foreign sources for critical materials.