US Launches Project Vault to Secure Critical Minerals and Cut China Dependence

US Moves to Secure Mineral Supply Chains

US President Donald Trump has announced Project Vault , a USD 12 billion (≈ rs1 lakh crore) initiative aimed at building a strategic stockpile of critical minerals and rare earth elements . The programme reflects rising concern in Washington over supply-chain vulnerabilities affecting defence, high-technology manufacturing, clean energy, and advanced electronics, particularly due to heavy reliance on China.

What Is Project Vault?

Project Vault is structured as a public–private partnership designed to purchase, store, and manage reserves of minerals essential to modern industry. The initiative combines USD 1.67 billion (≈ Rs13,900 crore) in private seed funding with up to USD 10 billion (≈ Rs83,000 crore) in financing backed by the US Export-Import Bank .

Key minerals targeted include cobalt and gallium , both crucial for:

• Lithium-ion batteries

• Semiconductors and chips

• Defence electronics

• Jet engines and aerospace components

How the Stockpiling Mechanism Works

Under the Project Vault framework:

• Participating firms commit in advance to purchasing minerals at a fixed inventory price

• Companies pay upfront participation fees

• Project Vault procures and stores minerals based on these commitments

• Firms pay a carrying cost covering storage and financing

Companies may draw from their allocated stockpile as long as they replenish the same quantity. In the event of a major supply disruption, firms can temporarily access their full reserves but must later repurchase the same volume at the original price , a mechanism designed to stabilise prices and reduce market volatility.

Industry Participation and Strategic Coverage

More than a dozen major corporations have joined the initiative, including General Motors , Boeing , Stellantis , Google , and Corning .

Raw material procurement will be handled by global commodity traders Hartree Partners , Traxys North America , and Mercuria Energy Group .

The minerals involved are widely used in smartphones, electric vehicles, renewable energy systems, and aerospace technologies , sectors considered strategically sensitive by the US government.

Why the US Is Acting Now

The move aligns with a broader American strategy to reduce dependence on China , which currently dominates global mining, processing, and refining of several critical minerals. Supply risks intensified after China imposed export controls on select minerals, disrupting production across parts of the US manufacturing sector.

Alongside Project Vault, Washington has:

• Invested in domestic