Trump Announces $12 Billion Plan To Stockpile Critical Minerals

US President Donald Trump on Monday announced plans to create a national stockpile of critical minerals. The initiative, called Project Vault, is aimed at securing supplies of minerals such as lithium, nickel, and rare earths that are used in electric vehicles, advanced electronics, and defence equipment.

The project is being committed through $10 billion in seed funding through the US Export-Import (EXIM) Bank. It is also being paired with $2 billion in private capital. The EXIM Bank said it approved the $10 billion loan on Monday.

Reduce Reliance On China

The announcement comes as Washington steps up efforts to reduce reliance on China. Notably, US policymakers have accused Beijing of manipulating prices in several key mineral markets. Those concerns have grown sharper as demand for battery metals and rare earths rises across autos, clean energy and defence manufacturing.

How Project Vault Would Work?

Project Vault will combine public and private funding to buy and hold minerals for use by US manufacturers. According to sources, commodities trading firms Hartree Partners, Traxys North America, and Mercuria Energy Group will manage the procurement of raw materials for the stockpile.

Under the structure being proposed, companies will first agree to buy specific minerals at a fixed inventory price at a later date and pay certain upfront charges. Once those commitments are in place, manufacturers will be able to submit a list of the materials they need under Project Vault.

The project will then arrange the purchase and storage of those minerals. Companies using the stockpile will pay a carrying charge to cover costs linked to interest on the EXIM loan and the expense of holding the materials.

Manufacturers will be allowed to draw down from their allocated stock as long as they replace what they take. In the event of a major supply disruption, they will be able to access the full quantity, administration officials said.

The goal is to maintain a 60-day supply of critical minerals for emergency use. Stockpiling has already begun. However, details on volumes and specific minerals have not been disclosed.

Policy Backdrop And Earlier Efforts

The move builds on earlier efforts in Congress to support critical mineral supply chains. Last month, a bipartisan group of US lawmakers introduced a bill proposing a $2.5 billion stockpile of critical minerals. That proposal aimed to stabilise prices and encourage domestic mining and refining.

Project Vault is significantly larger than the congressional proposal and relies more heavily on loan financing and private participation. The administration’s plan also places greater emphasis on immediate procurement rather than long-term capacity building alone.

US mining companies have long argued for long that price swings, often driven by Chinese supply, have made it hard to finance new projects. Policymakers have increasingly linked those market dynamics to national security concerns, especially for defence and advanced technology sectors.

By backing a central stockpile, the administration is seeking to create a buyer of last resort during downturns while also providing an assured supply during disruptions.

Global And India Impact

A large US stockpile could alter trade flows and pricing. The move shows rising competition among major economies for critical minerals. Indian policymakers and companies may face higher costs or tighter availability. However, the US push could also speed up diversification of supply chains beyond China. It could create new sourcing and partnership opportunities over time.

Sources:

Economic Times

Bloomberg