The Trump Xi summit rare earths topic surfaced as leaders and officials highlighted new measures to secure critical minerals and expand trade, with Washington announcing a major strategic reserve plan and Beijing agreeing to address shortages of specific elements.
The administration unveiled Project Vault, a strategic reserve initially backed by a 10 billion dollar loan from the US Export-Import Bank and nearly 1.67 billion dollars in private capital, according to reporting by the Associated Press.
The reserve will hold minerals used in jet engines, radar systems, electric vehicles, laptops and phones, and officials said it aims to shield manufacturers from supply disruptions while the loan is repaid over a 15 year period.
President Donald Trump announced Project Vault in the Oval Office alongside General Motors CEO Mary Barra and mining investor Robert Friedland, with congressional leaders and other administration figures present, the AP reported.
The White House also described near term trade outcomes from the Trump Xi summit, saying China agreed to buy at least 17 billion dollars of US agricultural goods annually through 2028 and to allow renewed sales of US beef and poultry.
The US readout noted China would address shortages of yttrium, scandium, neodymium and indium, and said Beijing agreed to buy 200 Boeing airplanes, while the Chinese statement did not explicitly name rare earths.
The State Department plans a ministerial on critical minerals that Secretary of State Marco Rubio will host, and Vice President JD Vance is scheduled to deliver a keynote, with officials from several dozen European, African and Asian nations expected to attend.
China Supply Dominance And Industry Responses
China’s grip on processing and magnet production has shaped US strategy, with the AP reporting Beijing supplies about 70 percent of world rare earths mining and 90 percent of processing.
Experts cited in reporting warned the supply chain takes years to rebuild, and that heavy rare earths used in munitions and advanced systems remain especially concentrated in China, Tom Moerenhout said.
Gracelin Baskaran of the Center for Strategic and International Studies said the United States still must tread carefully because transforming mining, processing and magnet production takes time.
The administration has also taken equity stakes in firms such as MP Materials and provided backing to Vulcan Elements and USA Rare Earth, as part of a broader push to diversify supplies.
Industry moves include USA Rare Earth’s announced plan to acquire Brazil’s Serra Verde Group, which reportedly owns a heavy rare earths mine and processing plant, while Brazilian antitrust authorities have opened an investigation.
Observers cited Japan’s long effort to diversify after a 2010 export halt by China as a cautionary example, and a CSIS analysis noted Japan still imported a majority of its rare earths from Beijing as of 2024.
