Trump’s $12 Billion Mineral Stockpile Is Quietly Reshaping Mining Stocks
When the U.S. government decides to become one of the biggest customers in a niche market, things get interesting. President Trump’s “Project Vault” — a $12 billion initiative to build a Strategic Mineral Reserve — is doing exactly that for rare earth stocks. And investors are paying attention.
Critical Metals Corp. (CRML) surged 35% on the announcement alone. But this isn’t just about one stock popping. Project Vault commits $10 billion in Export-Import Bank financing plus $2 billion in private capital to stockpile materials like neodymium, dysprosium, and lithium — the elements that power AI data centers, EV motors, and defense systems. When Uncle Sam starts writing checks with that many zeros, it changes the entire risk profile of an industry.
Here’s why this matters more than your average government spending announcement: China controls roughly 70% of global rare earth mining and a staggering 90% of refining capacity. For decades, Beijing invested while Western producers walked away from low margins and environmental headaches. The result? America’s most critical industries — from semiconductors to fighter jets — depend on a supplier that has already shown willingness to cut off exports during trade disputes.
The companies in the crosshairs of this policy shift include MP Materials (MP), which operates America’s only functioning rare earth mine at Mountain Pass, California. Energy Fuels (UUUU) runs one of the few U.S. facilities capable of producing separated rare earth oxides. USA Rare Earth (USAR) is developing a Texas project focused on heavy rare earths for military use. And Critical Metals Corp. (CRML) controls a massive deposit in Greenland — exactly the kind of allied-nation sourcing Washington is now prioritizing.
Don’t expect overnight results. Industry analysts estimate three to seven years before meaningful domestic production comes online. Mining projects still face permitting delays, environmental reviews, and capital requirements running into hundreds of millions. But what’s fundamentally changed is the demand side of the equation. Federal backing means guaranteed revenue, which means easier financing, which means projects that were stuck in limbo can actually move forward.
The bigger picture is hard to ignore. Rare earth elements are embedded in everything from AI infrastructure to renewable energy systems to military weapons. This isn’t a commodity trade — it’s a geopolitical repositioning. With bipartisan support for supply chain independence, the companies positioned to mine and process outside Chinese control could benefit from a policy tailwind that doesn’t disappear with the next election cycle.