The US government is pushing ahead with the establishment of a strategic reserve for critical minerals. According to sources in Washington, President Donald Trump is preparing to launch a new stockpiling initiative, backed by a total of $12 billion, to protect manufacturers from supply disruptions. The project is called Project Vault and aims to reduce US dependence on metals mined or processed in China – an issue that is considered increasingly sensitive in several industries.
The start of Project Vault was confirmed on Monday by the White House. The plan is based on a model similar to the principle of a strategic reserve as the US knows it from the energy sector – only this time, not oil, but raw materials such as gallium and cobalt are the focus. According to the statement, these materials are found in products ranging from smartphones to engine and aviation applications. The target group is correspondingly broad: Project Vault is aimed at automobile manufacturers, technology companies and other industrial consumers.
Project Vault: How the reserve is intended to work
At its core, Project Vault is designed as a buffer against major disruptions in the supply chain. Companies are to receive access to “allocated” quantities, which are procured and stored as part of the reserve. According to the mechanism described, participants may withdraw materials as long as they replenish the stocks. In the event of major supply failures, however, full access should be possible – this is precisely where the character as a strategic hedge lies.
In addition, Project Vault relies on price and planning elements: Manufacturers who commit to purchasing certain quantities at fixed prices should, in return, commit to buying back the same quantities later at the same cost. The government’s goal is to stabilise market prices and mitigate extreme fluctuations. This would make Project Vault not only a warehouse, but also an instrument to dampen short-term volatility in critical minerals – at least to the extent that the structure is supported by industrial partners.
The project underscores the ambition to make supply chains in the automotive, aviation, energy and technology sectors more robust. At the same time, the construction shows that the government is not only relying on direct state purchases, but also on contractually secured purchase and repurchase agreements that are intended to keep the stock permanently functional.
Financing and participants: Industry and commodity traders on board
Financially, Project Vault is designed as a mixed model: According to confirmation from Washington, $1.67 billion is to come from private capital, supplemented by a $10 billion loan from the Export-Import Bank of the United States. Together, this results in the aforementioned order of magnitude of 12 billion US dollars, which is to be used for purchase and storage.
More than a dozen companies are said to have already joined the project. These include General Motors, Stellantis, Boeing, Corning, GE Vernova and Google. According to the text, specialised traders will be responsible for purchasing the raw materials to fill the stock – including Hartree Partners, Traxys North America and Mercuria Energy Group.
Government sources also said that Project Vault was “oversubscribed” – i.e. more in demand than originally planned. The reasons given are the credit quality of the participating manufacturers, their long-term purchase commitments and the backing of the US export credit agency. This is crucial in the logic of the project: The more resilient the obligations of the participants, the more stable the reserve can be operated over longer periods without it permanently “bleeding out” in the event of withdrawals.
Political framework: from defence to civilian industry
The USA already has a national reserve for defence purposes, but a comparable stockpile for civilian industry has been lacking until now – Project Vault is intended to close this gap. According to the text, additional urgency also arises from the fact that the United States Department of Defense is accelerating its own stockpiling campaign and is aiming for short-term mineral purchases of up to 1 billion US dollars.
This is flanked by a more comprehensive package of laws: According to the presentation, the so-called One Big Beautiful Bill Act provides 7.5 billion US dollars for critical minerals. Of this, 2 billion US dollars are earmarked to expand the national stock by 2027, 5 billion US dollars are to flow into supply chain investments, and 500 million US dollars are planned for a Pentagon loan programme to promote private projects. It is also mentioned that the administration is investing directly in domestic mining companies in an unusual step to strengthen US production and processing of rare earths.
Movement is also coming from Congress: Last month, members of both parties introduced a bill to create a $2.5 billion stockpile of critical minerals – with the aim of stabilising prices and incentivising domestic mining and refining.
Project Vault will also become politically visible through an announced meeting on Monday: Trump is said to be planning to speak with Mary Barra and mining entrepreneur Robert Friedland, among others – a constellation that brings consumer and producer sides together at one table.
Project Vault thus marks a further step towards an actively managed raw materials policy: Stockpiling, financing via state-supported loans and binding industrial purchases are intended to increase the security of supply for key materials and reduce dependence on dominant processing and supply countries. The operative effect will ultimately depend on how quickly the reserve is filled – and how resilient the described withdrawal and replenishment rules function in an emergency.
