Trump Moves to Cut US Dependence on Chinese Minerals

By Staff, Agencies

US President Donald Trump plans to build a strategic reserve of critical minerals to reduce dependence on China, Bloomberg reported.

Rare-earth minerals, essential for smartphones, EVs, and advanced weapons, have become a global flashpoint. China controls over 90% of refining and nearly all permanent magnet production, giving it dominant influence over critical supply chains.

Sources say Trump’s “Project Vault” will use private funds and a $10 billion US Export-Import Bank loan to build a stockpile of critical minerals, protecting manufacturers from supply disruptions and price swings.

More than a dozen major companies, including General Motors, Boeing, and Alphabet’s Google, have reportedly joined the effort.

In April 2025, China imposed export controls on certain rare-earths used in military applications, later tightening restrictions with stricter licensing and extraterritorial rules affecting US-linked exports.

 After a Trump-Xi meeting in October in South Korea, China agreed to suspend the latest controls for a year in exchange for US tariff cuts. Despite the temporary reprieve, Washington has stepped up efforts to diversify supply chains, signing deals with Australia, Japan, and Ukraine

Global demand for rare-earth minerals is soaring amid US-China trade tensions. The International Energy Agency [IEA] predicts a 30-fold increase in lithium, cobalt, and similar minerals by 2040, fueled by the boom in electric vehicles and battery storage.

Russia is boosting its rare-earth strategy after President Putin ordered a long-term mining plan. The country holds an estimated 658 million tons of rare metals, including 28.5 million tons of 15 rare-earth types—enough to meet its long-term domestic needs.