What is the US strategic minerals stockpile? | Business and Economy News
Trump Administration Launches Strategic Minerals Stockpile Initiative
Washington, D.C. — President Donald Trump announced Monday the establishment of a strategic minerals stockpile, known as Project Vault, aimed at bolstering the U.S. supply of rare-earth minerals critical for various industries, including semiconductor manufacturing and electric vehicle production.
The initiative will leverage $2 billion in private investment, complemented by a $10 billion loan from the U.S. Export-Import Bank. During the announcement at the White House, Trump emphasized the importance of safeguarding American businesses and workers from potential shortages.
This strategy marks a continuation of the Trump administration’s efforts to reduce reliance on foreign sources, particularly China, which has previously restricted its mineral exports to gain leverage in international negotiations.
Overview of Recent Government Investments
Since 2025, the U.S. government has acquired equity stakes in several companies within the rare-earths sector. Notably, a 10 percent stake in USA Rare Earth was established to facilitate the construction of domestic production facilities for rare-earth elements and magnets, supported by $1.6 billion allocated under the CHIPS Act.
The recent investment agenda also includes a 10 percent stake in Korea Zinc, valued at approximately $1.9 billion. This venture is set to fund a $7.4 billion smelter project in Tennessee and is associated with a joint venture that would see significant U.S. government involvement.
In October, the federal government invested $35.6 million to secure a 10 percent stake in Trilogy Metals to advance operations at the Upper Kobuk Mineral Projects in Alaska. The initiative aims to develop critical minerals in the region.
Additionally, a 5 percent stake in Lithium Americas was announced as part of a joint venture with General Motors, targeting lithium production for electric vehicles in Nevada.
Earlier investments include a nearly 10 percent stake in Intel, designed to bolster domestic semiconductor manufacturing, and a 15 percent stake in MP Materials, which operates the only active rare-earth mine in the United States.
The government is reportedly considering an 8 percent stake in Critical Minerals to access the Tranbreez rare-earths deposit in Greenland, amid ongoing discussions regarding the territory’s status.
Market Reactions and Historical Context
As details of the stockpile initiative emerged, shares in key sector companies exhibited mixed performance. MP Materials and Intel noted increases of 0.6 percent and 5 percent, respectively, while Lithium Americas and others experienced declines.
Acquiring equity stakes in large businesses is uncommon in U.S. history, yet not without precedent. Notably, during the 2008 financial crisis, the government took significant stakes in companies through the Troubled Asset Relief Program (TARP), including a partial ownership of General Motors.
Experts have noted that while this approach diverges from traditional funding methods, it aligns with efforts to secure critical resources without excessive foreign dependency. Nick Giles, a senior equity research analyst at B Riley Securities, observed that the government’s objectives seem to prioritize investment returns.
Political Perspectives and Future Implications
The initiative reflects a nuanced divergence in political strategies. The previous administration, under President Biden, focused on providing grants for critical projects rather than purchasing equity. Trump’s plan aligns more closely with progressive viewpoints that advocate for government involvement in strategic sectors.
Reactions among lawmakers have varied, with some expressing support while others criticize the approach for potentially veering toward socialism. Notably, Senator Bernie Sanders praised the stake in Intel, arguing for taxpayer returns on investments in corporations.
As discussions continue regarding the future of U.S. mineral investments, experts highlight the pressing need for domestic control over critical resources, citing China’s dominance in the global rare-earth market as a significant concern for U.S. economic security.
