Trump Unveils Plan for US$12 Billion Critical Minerals Stockpile
President Donald Trump is preparing to launch a US$12 billion strategic stockpile of critical minerals aimed at accelerating the administration’s efforts to reduce the US dependence on China for key raw materials.
Known as Project Vault, the initiative will combine up to US$10 billion in long-term financing from the US Export-Import Bank (EXIM) with roughly US$2 billion in private capital.
Under the plan, Project Vault will procure and store minerals such as gallium, cobalt, lithium, rare earth elements and other strategically important materials used in products ranging from electric vehicles and batteries to smartphones, jet engines, and advanced defense systems.
Furthermore, the plan is also structured as an independently governed public-private partnership. Participating manufacturers will commit in advance to purchase specific quantities of materials at predetermined inventory prices and pay upfront fees.
In return, the project will acquire and store those materials on their behalf, charging a carrying cost tied to loan interest and storage expenses. Companies will be allowed to draw down their inventories as long as they replenish them, while retaining full access in the event of a major supply disruption.
A key feature of the design is a repurchase commitment: manufacturers that agree to buy a set amount of material at a given price also commit to repurchase the same amount at that price in the future. The administration views this as a stabilizing mechanism that could dampen extreme price swings in critical mineral markets.
Administration officials said the effort gained urgency after Beijing tightened export controls on certain critical materials last year, forcing some US manufacturers to scale back production and highlighting the extent of China’s leverage over global supply chains.
China currently dominates both the mining and processing of many critical minerals, giving it significant influence over prices and availability.
The EXIM Bank’s board is scheduled to vote on authorizing the 15-year, US$10 billion loan, which would be the largest financing deal in the agency’s history, more than double its previous record.
“Project Vault is designed to support domestic manufacturers from supply shocks, support US production and processing of critical raw materials, and strengthen America’s critical minerals sector,” EXIM Chairman John Jovanovic said in the announcement.
More than a dozen companies have already signed on, according to officials. Participants include automakers and industrial giants such as General Motors (NYSE:GM), Stellantis NV (NYSE:STLA), The Boeing Company (NYSE:BA), and Alphabet (NASDAQ:GOOGL)’s Google.
A step towards the right direction
“The announcement is a step in the right direction, that direction being minimizing China’s ability to disrupt the US economy and manufacturing/technology base by manipulating both price and supply of critical elements,” Silversteyn said.
However, he noted that it is “not a quick solution” given that many US-backed mining projects remain in early development stages or produce limited commercial volumes.
The initiative also follows earlier, less successful efforts. Last summer, the US withdrew a proposed US$500 million cobalt stockpile tender after failing to attract sufficient compliant supply.
Regardless, mining companies and developers have broadly welcomed the renewed push. American Pacific Mining Chief Executive Warwick Smith said Project Vault underscores the growing strategic importance of domestic copper supply.
“Once again, President Trump and the current administration are shining an important light on the need for more critical metals within the United States,” Smith said, pointing to copper’s role in electrification, transmission infrastructure, and advanced manufacturing.
Trump has also recently met with GM Chief Executive Mary Barra and mining entrepreneur Robert Friedland in a bid to bridge the interests of mineral producers and large industrial consumers.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
