U.S. Launches $12 Billion 'Project Vault' to Secure Critical Minerals, Counter China's Dominance
WASHINGTON — The United States is mobilizing a $12 billion public-private initiative to build a strategic reserve of critical minerals, marking the most aggressive step yet to break the nation's reliance on China for materials that power modern technology and national security.
Dubbed "Project Vault," the program will leverage a landmark $10 billion loan from the U.S. Export-Import Bank and $1.67 billion in private capital to procure and stockpile minerals like cobalt, gallium, and rare earth elements. The stockpile is designed to serve as a buffer for major manufacturers against the kind of supply shocks and price volatility that have repeatedly roiled global industries.
"This isn't just about buying metals; it's about buying stability for the American industrial base," said a senior administration official involved in the planning, who spoke on condition of anonymity ahead of the formal announcement. The effort is modeled on the nation's Strategic Petroleum Reserve but tailored for the minerals that underpin the 21st-century economy.
The initiative has already secured commitments from a coalition of corporate giants, including General Motors, Boeing, Google's parent Alphabet, and commodities traders Hartree Partners and Mercuria. These partners represent both the consumers and the logistical handlers of the materials deemed vital for automotive, aerospace, energy, and tech sectors.
China currently refines nearly 90% of the world's rare earths and dominates the processing of many other critical minerals. That dominance became a stark vulnerability last year when Beijing tightened export controls on gallium and germanium, sending shockwaves through global supply chains and forcing some U.S. manufacturers to scale back production.
"Project Vault is a direct response to that leverage," the official added. "It provides a tangible mechanism to insulate our key industries."
Under the program's structure, participating manufacturers commit upfront to purchase a set amount of material at a future, predetermined price. In return, Project Vault's operators will source and store the physical inventory. Companies can draw down their allotment as needed, provided they replenish it, ensuring a rotating, accessible reserve. In a crisis, full access is guaranteed.
Administration officials frame the repurchase commitment as a "stabilizing mechanism" that could help dampen wild price swings, akin to the 2022 nickel crisis triggered by Russia's invasion of Ukraine. The Ex-Im Bank's board is expected to approve the record-setting 15-year loan later Monday.
The launch coincides with a Washington summit this week where U.S. officials will urge dozens of allied nations to forge similar mineral security pacts, building on existing agreements with Australia and Japan. The move signals a shift from ad-hoc trade actions to a structured, long-term strategy for resource independence.
Reaction & Analysis:
"This is a necessary, if overdue, piece of industrial policy," said David Chen, a supply chain analyst at the Georgetown Center for Strategic Studies. "For decades, we offshored not just production but also material security. Project Vault is a foundational step to re-shore resilience, though its success will hinge on execution and sustained political will."
"Throwing $12 billion at a storage locker doesn't solve the root problem," fired back Maya Rodriguez, a senior fellow at the Economic Security Institute. "This is a massive subsidy to major corporations, letting them socialize the cost of risk management while doing little to build domestic mining and processing. We're building a warehouse for China's products instead of our own production lines. It's a band-aid on a bullet wound."
"From an operational view, the involvement of major traders like Traxys is smart," noted James Kellerman, a former procurement director for an automotive parts supplier. "They have the market expertise to buy efficiently. If this brings price predictability for my raw material inputs, it's a huge win for planning and capital investment. The devil will be in the carrying costs and fees they haven't disclosed yet."
The U.S. maintains a separate, smaller stockpile for defense needs, but Project Vault represents the first major effort to secure the civilian industrial economy. It also complements recent federal investments in domestic mining and processing projects, aiming to build a complete supply chain ecosystem less susceptible to geopolitical friction.