Trump Unveils Project Vault to Secure US Mineral Supplies

US President Donald Trump has announced a $12 billion initiative aimed at building a strategic stockpile of critical minerals, seeking to shield American industries from supply disruptions and reduce dependence on China. The programme, named Project Vault, reflects growing concern in Washington over vulnerabilities in defence, technology and manufacturing supply chains.

What Is Project Vault?

Project Vault is designed as a public–private partnership to purchase and store critical minerals and rare earth elements essential for modern industry. Announced by Donald Trump at the White House, the initiative will combine $1.67 billion in private seed funding with up to $10 billion backed by the US Export-Import Bank. Minerals targeted include cobalt and gallium, which are vital for batteries, semiconductors, defence electronics and jet engines.

How the Stockpiling System Will Work

Under the scheme, participating companies will commit in advance to buying minerals at a fixed inventory price and pay upfront fees. Based on these commitments, Project Vault will procure and store the required materials. Firms will pay a carrying cost covering storage and financing expenses. Companies can draw from their stockpile as long as they replenish what they use, while in the event of a major supply shock they may access their entire allocation. A key rule requires firms to repurchase the same quantity later at the same price, a mechanism intended to reduce price volatility.

Industry Participation and Strategic Focus

More than a dozen major companies have already joined Project Vault, including General Motors, Boeing, Stellantis, Google and Corning. Three global commodity trading firms—Hartree Partners, Traxys North America and Mercuria Energy Group—will manage raw material purchases. The minerals covered are widely used in smartphones, electric vehicles, aerospace components and renewable energy systems, sectors seen as strategically sensitive.

Important Facts for Exams

• Critical minerals include cobalt, lithium, gallium and rare earth elements.
• China dominates global processing and supply of several critical minerals.
• Project Vault is modelled partly on the US Strategic Petroleum Reserve.
• Mineral security is linked to defence, clean energy and high-tech industries.

Why the US Is Acting Now

The initiative fits into a broader US strategy to reduce supply chain dependence on China. Supply risks intensified after Beijing tightened export controls on some minerals, forcing production cuts in parts of the US manufacturing sector. Alongside Project Vault, Washington has invested in domestic mining and processing and signed cooperation agreements with countries such as Australia, Japan and Malaysia. The administration plans to push further mineral partnerships at an upcoming global summit in Washington, underlining the growing geopolitical importance of resource security.