US Mobilizes $12 Billion in Public-Private Funds to Secure Critical Mineral Supplies

2026-02-02 politics

Washington D.C., Monday, 2 February 2026.
Dubbed Project Vault, this initiative combines a record Export-Import Bank loan with capital from giants like Google and GM to insulate American manufacturing from China’s grip on global supply chains.

Project Vault: A Strategic Shield for US Industry

On Monday, February 2, 2026, the Trump administration reportedly moved to establish a massive strategic reserve of critical minerals, marking a significant escalation in the effort to decouple American supply chains from foreign reliance. Known as Project Vault, the initiative is funded by $12 billion in seed money designed to protect domestic manufacturers from the volatility of global markets [1][2]. The financing structure is a hybrid public-private partnership: it marries approximately $1.67 billion in private capital with a substantial $10 billion loan from the U.S. Export-Import Bank (Ex-Im), representing a decisive shift toward state-backed industrial security [2][3]. The Ex-Im Bank’s board is scheduled to vote on authorizing this 15-year loan on Monday, a transaction that would stand as more than twice the size of the bank’s previous largest deal [3].

Corporate Titans Join the Fold

The initiative has attracted a coalition of more than a dozen heavyweights across the automotive, aerospace, and technology sectors. Participating companies include General Motors, Stellantis, Boeing, Corning, GE Vernova, and Alphabet’s Google [1][3]. These corporations are effectively looking to hedge against supply shocks by leveraging a federal stockpile that functions similarly to the Strategic Petroleum Reserve but is tailored for the digital and green economy [3][5]. To manage the complex logistics of purchasing raw materials, three major commodities trading firms—Hartree Partners LP, Traxys North America LLC, and Mercuria Energy Group Ltd.—have been enlisted to oversee procurement [3][6].

Insulating Industry from Geopolitical Shock

This mobilization of capital comes in direct response to the vulnerabilities exposed over the last year. In 2025, the risks of concentrated supply chains materialized when China, which refines 19 of the 20 strategic minerals tracked by the International Energy Agency (IEA), imposed export controls on key inputs like gallium, germanium, and graphite [7]. With China holding an average market share of about 70% in refining these strategic minerals—and over 90% for gallium, manganese, and rare earths—US manufacturers have faced the threat of utilization cuts and shutdowns [7]. While a US-China trade agreement temporarily suspended these export controls until November 2026, Project Vault appears to be a preemptive measure to ensure stability once that suspension expires [4].

Market Reaction and Future Outlook

Financial markets reacted swiftly to reports of the initiative on Monday. Shares of domestic mining and materials companies, including MP Materials, USA Rare Earth, Critical Metals, and NioCorp, surged in premarket trading as investors anticipated increased demand for North American output [5]. The administration is wasting no time in solidifying these alliances; President Trump is scheduled to meet with GM CEO Mary Barra and mining billionaire Robert Friedland on Monday to discuss the project [6]. Following this, a broader summit regarding critical mineral supply chains involving dozens of countries is set to convene in Washington on Wednesday, February 4, 2026, signaling that the US intends to lead a coordinated international effort to diversify global supply lines [6].

Sources

Rare earths Supply chain