WASHINGTON, D.C. – President Donald Trump has stepped up his push this month to reduce China’s hold over critical minerals, the raw materials used in electric vehicles, smartphones, advanced weapons systems, and many AI-related tools.
China controls about 70% of global rare earth mining and as much as 90% of processing. The Trump administration says that kind of control puts the United States at risk, especially after Beijing used export limits and pricing pressure to sway markets.
At the center of the plan is Project Vault, a nearly $12 billion strategic stockpile announced on February 2, 2026. It’s backed by a $10 billion loan from the U.S. Export-Import Bank, plus $2 billion from private investors.
The goal is to build reserves of minerals such as rare earths, lithium, cobalt, and nickel. The White House says the stockpile will help protect U.S. manufacturers from supply disruptions, calm price swings, and support more mining and processing at home.
Critical Minerals Ministerial
“American businesses have risked running out of critical minerals during market disruptions,” Trump said during the Oval Office event. “Project Vault keeps our workers and industries from getting hit by shortages.” The announcement followed China’s recent limits on rare earth magnets, which rattled supplies tied to semiconductors, drones, and electric vehicles.
Two days later, the administration brought together the first Critical Minerals Ministerial on February 4, with officials from 54 countries. Attendees included India, Japan, Australia, the United Kingdom, and several resource-rich nations in Africa and Latin America.
Vice President JD Vance promoted the idea of a preferred trade group among allies. The proposal included enforceable price floors, shared stockpiles, and tariffs meant to counter China’s practice of driving prices down by flooding markets with cheaper supply.
Alongside the meeting, the U.S. signed 11 new bilateral frameworks and memorandums of understanding (MOUs). Partners included Argentina, Peru, the Philippines, the United Arab Emirates, and Uzbekistan. The agreements focus on joint projects, pricing guardrails, access to financing, and expanding refining and processing capacity, areas where China still holds the upper hand.
One of the biggest headlines is a growing U.S.-India partnership. An interim trade framework released February 6 sets the tone, with U.S. Trade Representative Jamieson Greer calling it a deal that opens “one of the largest economies in the world for American workers.” It includes two-way tariff changes and supply chain commitments meant to reduce dependence on China.
Building US Supply Chains
Under the framework, India would cut or remove tariffs on a wide range of U.S. industrial products and farm goods, including dried distillers’ grains, soybean oil, tree nuts, and wine. In return, the U.S. would impose an 18% reciprocal tariff on certain Indian exports such as textiles, apparel, leather, and machinery, while lifting tariffs on others, including generic drugs, gems, and aircraft parts.
India also agreed to buy $500 billion in U.S. goods over five years. The list includes energy (oil and gas), coking coal, aircraft, precious metals, and tech items such as graphics processing units used in AI and data centers.
The framework is not limited to minerals, but it fits the broader goal of building supply chains less exposed to China. India took part in the ministerial talks and has also explored related arrangements with countries like Brazil and Canada.
Many analysts see this as a shift in geopolitics. By signaling support for a U.S.-led minerals group, India shows it shares Washington’s interest in cutting reliance on Beijing. That matters as New Delhi works to expand its own mining and processing base. The interim agreement also supports a longer-term U.S.-India trade deal that began taking shape in 2025 under Trump and Prime Minister Narendra Modi.
The administration is also using executive action. A January 2026 order on imports of processed critical minerals puts more weight on negotiations with other countries. It also raises the possibility of tariffs or import limits if partners do not cooperate. These steps build on earlier work, including updates to U.S. critical minerals lists and new incentives tied to domestic production.
U.S.-China Tensions
Skeptics question whether the strategy can hold up over time, pointing to past policy swings and China’s deep lead in infrastructure and processing know-how. Backers say the mix of stockpiles, allied trade rules, and country-by-country deals marks the strongest U.S. push yet on minerals policy.
With U.S.-China tensions still high, the White House is framing these moves as part of an “America First” push to secure materials tied to economic strength and defense readiness. Billions of dollars are now in motion, and more countries are lining up behind new rules. The administration says it wants to do more than compete; it wants to break China’s grip on the materials that will shape the next few decades.
The next several months will show whether these announcements turn into real mines, refineries, and supply contracts that lower risk for the U.S. industry. For now, Trump’s latest actions have redrawn lines in the global critical minerals fight, with allies coordinating more closely and China facing a more organized challenge.
