United States Creates Rare Earth Reserve
Analysis based on 6 articles · First reported Feb 02, 2026 · Last updated Feb 03, 2026
The creation of the rare earth strategic reserve by the United States is expected to stabilize supply chains for industries reliant on these minerals, such as automotive and electronics, reducing their vulnerability to geopolitical tensions. This move could negatively impact China's leverage in trade talks by diminishing its 'chokehold' on the rare earths sector, while boosting the market sentiment for domestic U.S. rare earth companies like MP Materials, American Elements, and USA Rare Earth.
The Donald Trump administration has launched 'Project Vault,' a strategic reserve for rare earth elements, with an investment of nearly $12 billion. This initiative, primarily funded by a $10 billion loan from the United States — Export–Import Bank of the United States and $1.67 billion in private capital, aims to counter China's dominance in rare earth mining and processing. China currently controls about 70% of global rare earth mining and 90% of processing, and has previously restricted exports, impacting U.S. manufacturers. The reserve will protect industries like autos and electronics from supply chain disruptions. The United States government has also supported companies such as MP Materials, American Elements, and USA Rare Earth to foster alternative sources. The project was announced by Donald Trump, who met with General Motors CEO Mary Barra and mining billionaire Robert Friedland. Secretary of State Marco Rubio is hosting a ministerial meeting on critical minerals, where Vice President JD Vance will deliver a keynote address, further emphasizing the United States' commitment to securing access to these vital elements.
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