Donald Trump has announced Project Vault, a nearly $12 billion U.S. critical minerals stockpile aimed at reducing reliance on China and protecting American industries from supply disruptions.

Axar.az, citing The Guardian, reports that the reserve, modeled on the Strategic Petroleum Reserve, is designed to secure minerals vital for defence, automotive, electronics, and clean energy sectors.

The initiative will be funded by a $10 billion loan from the U.S. Export-Import Bank and about $1.67 billion in private investment, with the loan spanning 15 years. Trump said the stockpile would ensure U.S. businesses are never harmed by shortages and could ultimately generate a profit for the government.

The move follows China’s past restrictions on rare earth exports during trade disputes. China currently controls about 70% of global rare earth mining and 90% of processing, giving it significant leverage.

The U.S. expects 11 other countries to join the project, with further cooperation to be discussed at an upcoming State Department meeting on critical minerals, where new bilateral supply-chain agreements are also expected.