ASIATODAY.ID, WASHINGTON – The United States is preparing a major push to reduce its dependence on strategic minerals dominated by China, as President Donald Trump moves to secure supply chains vital to industry and national defense.
At the center of the effort is Project Vault, an initiative that will combine private-sector funding with a $10 billion loan from the US Export-Import Bank to acquire and stockpile critical minerals.
The reserve is intended to protect US manufacturers from price volatility, supply disruptions, and growing geopolitical risks.
Rare-earth minerals are essential to modern technologies ranging from smartphones and electric vehicles to advanced weapons systems.
China currently controls more than 90% of global rare-earth refining capacity and nearly all permanent magnet production, giving Beijing decisive leverage over supply chains crucial to both civilian industries and military capabilities.
More than a dozen major US corporations — including General Motors, Boeing, and Alphabet’s Google — are reportedly participating in the project, highlighting rising concerns within American industry over strategic vulnerabilities linked to China’s dominance.
Tensions escalated in April 2025, when Beijing imposed export controls on certain rare-earth elements used in military applications, citing national security.
The restrictions were later expanded through tighter licensing requirements and extraterritorial provisions affecting exports tied to the US defense and semiconductor sectors.
Although China agreed to temporarily suspend the latest controls for one year following a meeting between Trump and Chinese President Xi Jinping in South Korea in October, Washington has continued to accelerate efforts to diversify supply chains.
The US has since signed strategic minerals agreements with several partners, including Australia, Japan, and Ukraine.
Global demand for critical minerals is expected to surge sharply. The International Energy Agency (IEA) forecasts a 30-fold increase in demand for minerals such as lithium and cobalt by 2040, driven by the rapid expansion of electric vehicles and energy storage systems.
Other major powers are also positioning themselves. Russia, which claims vast reserves of rare-earth and strategic minerals, has directed its government to develop a long-term strategy to strengthen domestic mining and production capacity.
Trump’s move underscores a broader shift in global politics: control over strategic minerals is increasingly viewed as a pillar of economic security and geopolitical power, on par with energy, technology, and military strength. (AT Network)
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