President Donald Trump has announced a major plan to establish a Rare Earth Elements Strategic Reserve, committing about $12 billion to reduce the United States’ reliance on foreign supplies, particularly China, for critical minerals essential to national security and advanced manufacturing.
Eko Hot News reports that Trump made the announcement during a White House briefing, describing the initiative as a long-term safeguard for key industries such as defence, technology, automotive manufacturing, and clean energy. He said the reserve would ensure stable access to materials vital for economic resilience and military readiness.
The Rare Earth Elements Strategic Reserve will be modeled after the Strategic Petroleum Reserve and is designed to stockpile minerals used in jet engines, electric vehicles, smartphones, semiconductors, and advanced weapons systems. Officials said the plan addresses vulnerabilities exposed by global supply chain disruptions.
China currently dominates the global rare earth market, controlling the majority of mining and processing capacity. Trump stressed that the United States must end its dependence on a single foreign supplier, warning that export restrictions could be used as geopolitical leverage during times of tension.
Funding for the reserve will include a combination of government-backed loans and private-sector investment. The administration expects the initiative to stimulate domestic mining, processing, and refining projects while strengthening partnerships with allied countries rich in critical minerals.
Industry leaders present at the announcement welcomed the move, noting that predictable access to rare earth elements is essential for innovation and long-term investment. Analysts also said the reserve could boost confidence in U.S.-based supply chains.
The administration indicated that the reserve would operate on a commercial model, allowing materials to be released during shortages and replenished when market conditions stabilize. Trump said the strategy could generate returns over time while protecting national interests.
The initiative will be discussed further at an upcoming international meeting on critical minerals, where U.S. officials are expected to outline broader cooperation plans with allies to diversify global supply sources.
With the new reserve, Trump reaffirmed his administration’s focus on economic security, industrial independence, and strategic preparedness in an increasingly competitive global environment.
