Massive Mineral War Declared—China Blindsided

President Trump just launched a $12 billion strategic initiative to break China’s stranglehold on the critical minerals that power everything from your smartphone to our F-35 fighter jets—and Beijing is about to lose its most powerful economic weapon.

Story Snapshot

Project Vault creates first-ever civilian critical minerals reserve with $12 billion in government and private funding to shield U.S. manufacturers from Chinese supply manipulation
China currently controls 60-70% of rare earth mining and 90% of global processing, giving Beijing dangerous leverage over American defense and technology industries
Over a dozen major companies including GM, Boeing, and Google have already committed to the oversubscribed program, demonstrating strong confidence in breaking free from Chinese dependence
The initiative directly addresses a national security crisis where the U.S. relies entirely on imports for 12 critical minerals essential to military equipment, EVs, and medical devices

Breaking Free From Chinese Economic Coercion

The White House confirmed Project Vault on February 2, 2026, marking a decisive turn in America’s fight for supply chain independence. The initiative combines a $10 billion loan from the U.S. Export-Import Bank with $1.67 billion in private capital to stockpile critical minerals including cobalt, graphite, lithium, titanium, and rare earths. This public-private partnership mirrors the Strategic Petroleum Reserve but focuses on materials that China has weaponized against American interests. The program’s oversubscription signals that manufacturers understand the existential threat posed by reliance on a hostile competitor for materials essential to national security and economic prosperity.

China’s Mineral Monopoly Threatens American Security

For two decades, Beijing has systematically cornered the market on materials that make modern life possible. China’s grip on 90% of rare earth processing gives the communist regime power to cripple American industries at will. During 2025 trade disputes, China demonstrated this leverage by restricting rare earth exports, threatening production of everything from iPhones to fighter jets. According to White House data, America was entirely dependent on imports for 12 critical minerals in 2024, with 50% or more reliance on foreign sources for 29 others. This vulnerability represents an unacceptable national security risk that previous administrations ignored while promoting globalist trade policies that enriched China at America’s expense.

How Project Vault Protects American Manufacturers

The operational model demonstrates Trump’s business acumen applied to national strategy. Participating companies commit to purchasing set quantities of minerals at fixed prices, then agree to repurchase identical amounts at the same cost later. This structure stabilizes volatile commodity prices while giving manufacturers guaranteed access during supply disruptions. Companies can draw from their allocated stockpiles when China attempts economic coercion, then replenish reserves during normal market conditions. Major corporations including General Motors, Stellantis, Boeing, Corning, GE Vernova, and Alphabet have signed on, joined by commodities traders Hartree Partners, Traxys North America, and Mercuria Energy Group who will handle procurement and logistics operations.

Building Domestic Capacity to Replace Chinese Sources

Project Vault represents just one component of a comprehensive strategy to restore American mineral independence. Treasury Secretary Scott Bessent has overseen construction of a rare earth processing center in South Carolina, with similar facilities under development in Texas and other states. The administration’s “One Big Beautiful Bill Act” allocates $7.5 billion for critical minerals initiatives, including $2 billion to expand the national stockpile by 2027, $5 billion for supply-chain investments, and $500 million for Pentagon programs supporting private mining projects. Trump has also secured international agreements with Australia, Japan, and Southeast Asian nations to diversify mineral sources away from Chinese control, including an $8.5 billion rare earth deal with Australia signed in October 2025.

The minerals secured through Project Vault are non-negotiable for American strength. Cobalt, graphite, and lithium power electric vehicle batteries. Silicon enables semiconductor production. Titanium, nickel, and rare earths are essential for jet engines, radar systems, and advanced weapons platforms including F-35 fighters. Without reliable access to these materials, American manufacturers face production shutdowns that would devastate the economy and compromise national defense. China has exploited this vulnerability for years, using market dominance to extract political concessions and undermine American interests. Project Vault removes that leverage while creating jobs in domestic mining and processing, proving that economic nationalism and strategic independence go hand-in-hand with prosperity and security.