US Launches Project Vault, Forms Critical Minerals Bloc to Counter China

The Trump administration has launched 'Project Vault,' a strategic reserve for rare-earth elements and critical raw materials, backed by a $10 billion loan from the United States===Export–Import Bank of the United States and $1.67 billion in private capital. This initiative aims to counter China's dominance in critical raw materials mining and processing, which has been used as leverage in trade talks and caused supply chain disruptions for U.S. manufacturers. Concurrently, the United States, led by Vice President JD Vance and Secretary of State Marco Rubio, is pushing for a critical minerals trading bloc with allies including Japan, Australia, South Korea, India, Mexico, and the European Union. This bloc seeks to establish price floors, market standards, and guaranteed purchases to encourage diversified production and secure supply chains, reducing the vulnerability of Western economies to China's market manipulation. The move is a direct response to China's past restrictions on rare-earth element exports and aims to ensure a stable supply for industries like automotive, electronics, and defense. United States===The Pentagon has also invested nearly $5 billion to bolster domestic access to these materials. While the initiative has bipartisan support in the United States, it has also caused some diplomatic tensions, particularly with Denmark over Donald Trump's interest in acquiring Denmark===Greenland.