Us Unveils 12 Billion Project Vault To Secure Critical Minerals And Reduce Dependence On China

The United States is set to launch Project Vault, a $12 billion strategic stockpile of critical minerals aimed at reducing dependence on Chinese rare earths and other materials. This initiative comprises $1.67 billion in private investment and a $10 billion loan from the US Export-Import Bank (EXIM), according to Bloomberg.

The framework of Project Vault provides a beneficial return to US taxpayers while aligning with President Trump’s National Security Strategy by strengthening the domestic industrial base and securing supply chains. The initiative targets strategic minerals for industries such as automotive, aerospace and technology, with involvement from companies including Boeing, Corning, General Motors, GE Vernova, Alphabet’s Google and Stellantis NV.

Commodities trading firms Hartree Partners, Traxys North America and Mercuria Energy Group are tasked with procuring these materials. The US has an existing stockpile for defense needs but lacks one for civilian purposes. This significant investment in critical mineral stockpiles highlights the administration’s efforts to enhance domestic mineral production and processing through investments and international alliances.

The push to secure mineral supplies intensified after China tightened export controls last year, highlighting its influence over critical mineral markets and prompting some US manufacturers to reduce output. Project Vault’s detailed structure is still being finalised. Companies joining the initiative will commit to purchasing materials at agreed prices and pay upfront fees for preferred access.

During significant supply disruptions, they can fully access their inventories under certain conditions. A key aspect of the venture is stabilising market volatility by ensuring manufacturers repurchase materials at their original price. The Trump administration has sought to strengthen domestic critical minerals through various initiatives, including investments in infrastructure and research.

The existing U.S. Strategic Petroleum Reserve serves as a precedent for Project Vault, but instead focuses on minerals and other strategically important elements with high price volatility. Under Project Vault, materials could be drawn down during periods of acute disruption, subject to the understanding that participating companies will be required to replenish inventories as supplies recover, thereby keeping the stockpile intact.

In the case of a major supply disruption, the officials say that manufacturers will be able to access the full inventory. The initiative’s design aims to provide a 60-day emergency buffer for key minerals used across electronics, automotive, aerospace, and energy supply chains. Procurement of the stockpile will primarily be financed through a $10 billion, 15-year loan from the U.S. Export-Import Bank, supplemented by around $1.67 billion in private capital.

The bank is expected to vote later today on whether to authorize the 15-year loan, which is more than double the net-largest deal it has ever issued. The Trump administration will soon launch a critical minerals stockpile designed to insulate U.S. manufacturing from supply disruptions tied to China’s dominance of mining and refining. According to sources cited by Bloomberg, the initiative will provide a roughly 60-day emergency buffer for key minerals.

Procurement of the stockpile will primarily be managed by commodity traders Hartree Partners, Traxys North America, and Mercuria Energy Group. Participation is open to manufacturers that are willing to commit to fixed-price purchase and repurchase agreements. The project is already “oversubscribed because investors are attracted by a credit-worthy group of manufacturers,” according to a senior administration official.

The initiative’s design aims to support domestic manufacturers from supply shocks, support US production and processing of critical raw materials, and strengthen America’s critical minerals sector. According to EXIM chairman John Jovanovic, Project Vault is designed to “support domestic manufacturers from supply shocks, support US production and processing of critical raw materials, and strength America’s critical minerals sector.”

China has repeatedly tightened controls on exports of gallium, germanium, graphite, and other dual-use materials, using licensing regimes and approvals as leverage in broader trade disputes. While some restrictions were eased late last year, the underlying concentration of mining and processing capacity has not changed, leaving US manufacturers heavily exposed to Chinese policy shifts.

Last month, a bipartisan group of legislators introduced a bill to create a $2.5 billion stockpile of critical minerals in a bid to stabilize market prices and encourage domestic mining and refining. The move aims to reduce the reliance on foreign sources and mitigate price volatility caused by China’s export controls.