The United States has decided that if you can’t beat the global supply chain volatility, you might as well hoard the ingredients. President Donald Trump is officially launching Project Vault, a strategic reserve for critical minerals backed by a cool $12 billion. The goal is to protect American manufacturers from supply disruptions and, more importantly, stop acting like a desperate suitor waiting for China to say “yes” to exports.
The White House confirmed that Project Vault is a hybrid financial beast combining $1.67 billion in private capital with a massive $10 billion loan from the US Export-Import Bank. This fund will be used to purchase and stockpile essential materials like gallium and cobalt, the stuff that makes everything from your smartphone to Stellantis’ electric motors actually function.
This isn’t just a solo act by the government. Over a dozen heavy hitters have already signed up, including GM, Stellantis, Boeing, and even Google. It seems the prospect of running out of rare earths was enough to get the automotive and tech industries to play nice in the same sandbox. Commodity traders like Hartree Partners and Mercuria Energy Group will be doing the literal heavy lifting, handling the actual purchases to fill these high-tech cupboards.
The initiative is anchored by the One Big Beautiful Bill Act, which earmarks $7.5 billion specifically for critical minerals. This includes $2 billion to expand national stockpiles by 2027 and $5 billion for supply chain investments. To ensure this isn’t just a one-way street, the plan features a “refill” policy. Companies can tap into the materials during a crisis as long as they replenish them later, ideally at fixed prices to stop the market from behaving like a caffeinated toddler.
As Harvey Kaye, chairman of US Critical Materials, noted, secure supplies of these minerals are no longer an “optional” luxury. They are now considered strategic infrastructure. By investing directly in domestic mining and refining, the US is finally trying to assert its sovereignty over the materials that keep our defense and industrial bases from grinding to a halt.
