US President Donald Trump announced the activation of the Strategic Mineral Reserve.

The inventory, called “Project Vault,” was announced on Monday. It will combine $2 billion in private capital and a $10 billion loan from the Export-Import Bank of the United States.

It is the latest move by the White House to invest in rare earth minerals needed to produce critical products such as semiconductor chips, smartphones and electric vehicle batteries.

Trump said at the White House that the purpose of the move was to “ensure that American businesses and workers are not harmed by any shortages.”

The move to build a strategic reserve is the latest in a series of moves by the Trump administration to control how critical rare earth materials are produced to limit reliance on other countries, especially China, which has been curbing exports to gain leverage in negotiations with Trump.

Here are some of the U.S. government investments in this area.

What investments are there?

In 2025, the Trump administration acquired stakes in seven companies by converting federal grants into ownership status. One of the investments is a 10% stake in American Rare Earth Corporation, which plans to build rare earth element and magnet production facilities in the United States.

The project is supported by $1.6 billion allocated under the CHIPS Act, legislation passed during the administration of former Democratic President Joe Biden to reduce reliance on Chinese semiconductor manufacturing.

American Rare Earth announced the investment last week, with commercial production expected to begin in 2028.

The U.S. government also acquired about 10% of the company, worth about $1.9 billion. Korea Zinc Industry Financing a $7.4 billion smelter in Tennessee through a joint venture controlled by the U.S. government and unnamed U.S. strategic investors, who will then control about 10% of the South Korean company.

The joint venture will operate a mining complex consisting of two mines and the only operating zinc smelter in the United States. Construction will begin this year, with commercial operations expected to begin in 2029.

In October, the government announced an investment of US$35.6 million to acquire a 10% stake in Canada’s Trilogy Metals to support the Upper Kobuk Mineral Project (UKMP) in Alaska. The investment supports the development of critical minerals, including copper, zinc, gold and silver, in the Ambler Mining District in Alaska’s mineral-rich northwest.

Also in October, the United States announced it held a 5% stake in the company. Lithium Americas Financing operations of the Thacker Pass lithium mine in Nevada as part of a joint venture with General Motors (GM). The project will supply lithium for electric vehicles and has attracted strong interest from the Detroit automaker.

In August, the White House almost got Holds 10% of Intel shares. The government’s investment in the semiconductor chip giant is intended to help the company build and expand domestic manufacturing capabilities.

In July, the White House announced a 15% investment in MP Materials, which operates the only active rare earth mine in the United States in California. The largest federal stakeholder in this investment was the Department of War (then known as the Department of Defense), which committed $400 million.

The United States is also reportedly exploring acquiring an 8% stake in Critical Minerals in exchange for a stake in the Tranbreez rare earth deposit in Greenland, Reuters reported, underscoring Trump’s proactive bid to acquire the self-governing Danish territory.

Sector stocks were mixed following news of Trump’s stockpile plans. MP Materials and Intel gained 0.6% and 5% respectively. Others ended the day on a downward trend. Lithium Americas fell 2.2%. Trilogy Metals fell nearly 2%, U.S. rare earths fell 1.3% and South Korean zinc fell 12.6%.

Is this unusual?

Government purchases of large company stakes are unusual in U.S. history, but not unprecedented.

During the 2008 financial crisis, the U.S. government temporarily acquired equity stakes in several large companies through the Troubled Asset Relief Program (TARP). In 2009, TARP provided federal aid to GM, ultimately giving the government an ownership share of more than 60 percent. The intervention began in the final months of former President George W. Bush’s administration. In 2013, the government completely sold its stake in General Motors.

Through the Troubled Asset Relief Program, the government also acquired a 9.9% stake in Chrysler, which it exited in 2011.

The plan extends beyond automakers into finance. The U.S. government acquired more than 73% of GMAC (General Motors Acceptance Corporation, now Ally Financial) and exited its ownership in 2014. The U.S. government also acquired nearly 74% of financial services insurance giant AIG, selling the remaining shares in 2012, and acquired a 34% stake in Citigroup, which it fully exited in 2010.

Nick Giles, senior equity research analyst at investment bank and capital markets firm B Riley Securities, told Al Jazeera: “This is different from 2008, when there was an urgent need to support key companies. There is a more cautious approach now. They (the US government) want these investments to generate returns and they need to be viewed as good investments to attract other forms of capital.”

During the Great Depression, the government bought shares in several large banks. Previously, in the early 20th century, it purchased a stake in the Panama Railroad Company, which was responsible for building the railroad used during the construction of the Panama Canal. The stake is attached to specific projects rather than more open challenges such as foreign dependence on critical minerals.

“There may not be a clear end date, but they clearly want a return and that sends a big signal that more returns are coming. I don’t think they (the government) are going to let this fail,” Giles added.

Political differences over the approach

Trump’s predecessor, Joe Biden, was also interested in funding critical minerals projects, and he introduced the CHIPS Act to that end. Biden has focused on providing grants for projects rather than buying equity.

Trump’s stake purchases are actually more in line with the positions of progressive Democrats than those of members of his own party. Vermont Senator Bernie Sanders has long supported the U.S. government’s purchase of corporate equity.

In August, after the White House acquired Intel shares, Sanders applauds action.

“Taxpayers should not have to pay billions of dollars in corporate welfare to large, profitable companies like Intel without getting anything in return,” Sanders said at the time.

Kentucky Senator Rand Paul, known for his liberal stances, called ownership a “terrible idea” and called it “a step toward socialism” on CNBC. North Carolina’s Thom Tillis compared Intel’s investment to what countries like China or Russia would do.

For Babak Hafezi, an international business professor at American University, these investments are a step toward eliminating dependence on China.

“Without domestic control and flexibility over mining and production, we are dependent on China, which mines nearly 60 percent of the world’s rare earth minerals and produces 90 percent of them. This creates a major global bottleneck that China can exploit as a means to dictate U.S. foreign policy through supply chain constraints,” he said.

“Therefore, establishing free and open markets for American consumption is critical to eliminating any dependence.”