"Project Vault": US builds $12 billion strategic mineral reserve

The US government wants to protect American companies from rare earth supply shortages through "Project Vault."

President Donald Trump officially unveiled "Project Vault" at the White House - a $12 billion strategic reserve for critical minerals. According to Bloomberg, Trump referenced last year's trade disputes with China, saying the US never wants to go through that again.

The initiative combines roughly $2 billion in private capital with a $10 billion loan from the US Export-Import Bank.

Building a buffer for American industry

The reserve will function similarly to the Strategic Petroleum Reserve, but focuses on rare earths and critical minerals like gallium and cobalt. These raw materials are essential for countless technology products.

According to Bloomberg, more than a dozen companies have already committed to participate, including General Motors, Stellantis, Boeing, Corning, GE Vernova, and Google. GM CEO Mary Barra attended the announcement in the Oval Office. Commodity traders Hartree Partners, Traxys, and Mercuria will handle procurement.

How the price protection system works

Under the system, participating manufacturers commit to buying materials at a set price and later repurchasing them at the same rate. Project Vault handles procurement and storage, while companies can draw from their reserves and must replenish them afterward. In the event of major supply disruptions, they get access to the entire stockpile.

The US has already signed agreements with Australia, Japan, and Malaysia. A summit in Washington this week is expected to produce additional partnerships - the EU is also negotiating a similar agreement. In 2024, Germany sourced about two-thirds of its rare earths from China.