Trump Launches $12B 'Project Vault' to Secure Critical Minerals and Counter China

On February 2, 2026, President Donald Trump announced 'Project Vault,' a $12 billion strategic initiative designed to stockpile critical minerals essential for electric vehicles, advanced weaponry, and technology manufacturing. The project combines $10 billion in seed funding from the U.S. Export-Import Bank (EXIM) with $2 billion in private investment. The aim is to mitigate risks posed by potential market disruptions and to counter perceived Chinese dominance and manipulation of the global critical minerals market, especially in materials like lithium, nickel, and rare earth elements.

Key stakeholders involved include leading auto manufacturers such as General Motors, represented by CEO Mary Barra, and mining industry figures like Robert Friedland. Commodities trading firms such as Hartree Partners, Traxys North America, and Mercuria Energy Group will manage mineral procurement. Project Vault seeks to provide a 60-day emergency mineral supply while insulating companies from price volatility and supply chain risks.

The announcement follows a bipartisan legislative push for a separate $2.5 billion critical minerals stockpile. Stocks in mining companies surged in anticipation of the announcement.

Market Implications

The launch of Project Vault has significant implications for various sectors:

• Mining and Resource Companies: Companies involved in the extraction and processing of critical minerals may see increased demand and investment.
• Automotive and Technology Sectors: Manufacturers reliant on these minerals for EVs and electronic devices may benefit from more stable supply chains.
• Commodities Trading Firms: Firms managing procurement may experience increased activity and revenue streams.

Related Financial Instruments

Investors may monitor the following financial instruments for market reactions:

• Global X Lithium & Battery Tech ETF (LIT): Tracks the performance of the lithium industry, including mining and battery production.
• MP Materials Corporation (MP): Engaged in the production of rare earth materials.
• Albemarle Corporation (ALB): A major producer of lithium and other specialty chemicals.
• Lithium Americas Corp (LAC): Focused on the development of lithium projects.
• iShares MSCI Global Metals & Mining Producers ETF (PICK): Provides exposure to global companies involved in the extraction and production of metals and minerals.

Conclusion

Project Vault represents a significant step by the U.S. government to secure critical mineral resources and reduce reliance on foreign markets, particularly China. The initiative is poised to impact various industries and may influence market dynamics in the mining and manufacturing sectors.