#Project Vault Launched to Strengthen U.S. Mineral Supply
The Trump administration has announced the launch of Project Vault, a $12 billion initiative designed to create a strategic stockpile of rare earths and critical minerals in the United States. The project aims to shield U.S. manufacturers from supply chain disruptions and reduce reliance on China.
Funded by a $10 billion loan from the Export-Import Bank and $1.67 billion in private capital, the program is designed to shield automakers, technology firms, and industrial companies from supply disruptions and price volatility. Materials targeted for storage include gallium and cobalt, which are widely used in consumer electronics, batteries, aerospace components, and jet engines.
The stockpile would represent the first large-scale, privately oriented strategic mineral reserve in the US. It is modeled structurally on the nation’s emergency oil reserve, but focuses on industrial metals rather than energy commodities. The stored minerals would be held for release during supply shortages or periods of extreme market disruption.
Participation in the project currently includes more than a dozen major US manufacturers. Confirmed participants include General Motors Co., Stellantis NV, Boeing Co., Corning Inc., GE Vernova Inc., and Google.
Three global commodities trading firms will manage the procurement of minerals for the stockpile. These firms include Hartree Partners LP, Traxys North America LLC, and Mercuria Energy Group Ltd.. The traders will source and acquire materials for long-term storage on behalf of the participating companies.
#Investor Takeaway
The announcement highlights increased federal involvement in critical minerals procurement and storage, with immediate effects seen in publicly traded US rare earth and specialty metals companies.
#Market Impact
The initiative may increase near-term demand for domestically sourced minerals and expand government-linked purchasing activity. Commodity traders and industrial end users are positioned as central participants.
#What’s Next
Trump is scheduled to meet with General Motors chief executive Mary Barra and mining executive Robert Friedland. Further details on procurement timelines and storage mechanisms are expected following the formal announcement.