The Trump administration says that it's planning to invest nearly $12 billion to form a strategic reserve of rare earth minerals, in hopes of protecting domestic manufacturers from supply chain disruptions and reducing the country's reliance on China.

According to the Associated Press, "Project Vault" will get its initial $10 billion in funding in the form of a loan from the U.S. Export-Import Bank, in addition to $1.67 billion from private capital. Minerals held in reserve will be used as a safeguard for automakers, electronics manufacturers and other sectors in the event of any future shortages or disruptions.

This comes ahead of a scheduled February 4 meeting of ministers from the U.S., European Union, U.K., Japan, Australia and New Zealand, to discuss a strategic alliance centered around critical minerals, The Guardian reports. Australia also announced a plan to set up a A$1.2 billion ($834 million) reserve of minerals on January 30, while Japan has built up its own reserves for years in the face of growing economic pressure from China.

“Strengthening critical mineral supply chains with international partners is vital for the U.S. economy, national security, technological leadership, and a resilient energy future,” a U.S. state department spokesperson said in a statement published prior to the February 4 summit.

China accounts for an estimated 70% of the world's rare earth mineral mining, as well as 90% of rare earth processing. During 2025 trade talks with the U.S., China restricted exports of rare earths used in jet engines, radar systems, electric vehicles, laptops and phones, and in early 2026, similarly banned certain rare earth element exports to Japan.