The initiative is intended to insulate the domestic industry from supply shortages.
The Trump administration is preparing to launch a civilian critical minerals stockpile dubbed Project Vault, Bloomberg reports, citing senior government officials. With the $12 billion initiative, the U.S. aims to shield domestic manufacturers from supply disruptions and reduce reliance on China-dominated critical minerals supply chains.
The project combines $10 billion in financing from the U.S. Export-Import Bank with $1.67 billion in private capital to procure and store rare earths and other critical minerals used across the automotive, aerospace, technology, and energy sectors. According to the officials, Project Vault is designed as a civilian counterpart to the Strategic Petroleum Reserve, offering companies protection against price volatility and sudden shortages.
More than a dozen major manufacturers have signaled interest. Participating companies will commit to purchasing specified quantities of materials at fixed prices, pay carrying costs associated with storage and financing, and agree to repurchase equivalent volumes in the future.
Latest Domestic U.S. Stockpiling Push
Project Vault is the latest step in a broader push by the U.S. government to take a more direct role in critical minerals markets and stockpiling. The Trump administration’s One Big Beautiful Bill Act, passed by Congress last July, allocated billions of dollars to minerals-related programs and laid the groundwork for a more assertive stockpiling strategy. Since then, the Defense Logistics Agency has moved to rebuild depleted reserves, add new elements to the national stockpile, and support expanded storage and refining capacity. While the U.S. already operates the National Defense Stockpile, the material in there is reserved for emergencies in times of national emergencies. Project Vault would open up stockpiling to private companies on a broader scale.
These measures reflect growing concern over the fragility of U.S. supply chains, as China, by far the leading producer and processor of many critical minerals, has repeatedly underscored its leverage through export controls and outright bans in recent years. According to a U.S. Geological Survey study published alongside its latest list of critical minerals, supply disruptions could inflict billions of dollars in losses on the U.S. economy, reinforcing the case for expanded stockpiling and government intervention.
Photo: Karola G, kostab via Canva, montage rawmaterials.net