In the face of ongoing tensions with China, the U.S. president has announced the creation of a strategic reserve dedicated to critical minerals. The initiative, named “Project Vault,” has a budget of $12 billion.
“Project Vault”: A Strategic Reserve of Critical Minerals
The balance of power among the world’s major powers is shifting as technology advances, to the point where it now involves rare earth elements and other minerals essential to certain industries, such as microchips, smartphone batteries, and aircraft engines.
These raw materials are considered critical, and their extraction allows certain countries to gain a clear strategic advantage on the international stage. And it goes without saying that China is not hesitating to leverage its largely dominant position across this entire supply chain (extraction and processing capacity) to counter the tariff pressures exerted by Donald Trump.
China’s footprint in the critical minerals market
In this context, the U.S. president has just announced the creation of a strategic reserve dedicated to rare earths and critical minerals, as part of a “Project Vault” estimated at $12 billion. The goal? To reduce U.S. dependence on China.
For years, American companies have risked running out of critical minerals during market disruptions. Today, we are launching what will be known as “Project Vault” to ensure that American businesses and workers are never penalized by any shortage.
Donald Trump
A dozen companies already involved
An initiative that follows directly in the footsteps of the country’s existing strategic emergency oil reserve, as well as the one Donald Trump promised to create using Bitcoin—which, for now, remains only a theoretical project.
In practice, this strategic reserve dedicated to civilian needs aims to stockpile critical minerals such as gallium, cobalt, lithium, nickel, and others used primarily by the automotive and technology sectors, by combining an estimated $1.67 billion in private capital with a $10 billion loan from the U.S. Export-Import Bank (Ex-Im Bank).
According to Bloomberg, a dozen U.S. companies have already announced their intention to participate in this project, including General Motors, Boeing, Google, Stellantis, and Corning, a specialist in high-tech glass and materials. As for procurement, Hartree Partners, Traxys North America, and Mercuria Energy will be responsible for building this emergency stockpile, which is designed to last 60 days.
Following this announcement, shares of major U.S. companies operating in the rare earth sector saw significant gains, including USA Rare Earth, Critical Metals, United States Antimony, and NioCorp Developments.
