The declaration will be signed today
In a move signaling a shift toward more interventionist industrial policies, the Trump administration announced the creation of “Project Vault,” a $12 billion strategic reserve of critical minerals.
The plan aims to reduce reliance on China in the global supply chain and draws on both China’s resource-control model and the U.S. Strategic Petroleum Reserve (SPR).
What “Project Vault” aims to achieve
Officials say Project Vault’s primary objective is to shield U.S. industries from potential supply disruptions involving critical minerals such as rare earths, cobalt, gallium and nickel — key inputs for batteries, electronics and defense equipment.
With this reserve, Washington seeks to secure domestic supply, reduce geopolitical risks and strengthen strategic sectors linked to the energy transition and national security.
China’s global dominance and U.S. vulnerability
China currently controls about 90% of global rare earth processing, allowing it to turn that dominance into a geopolitical tool. In recent years, Beijing imposed export licensing requirements and restrictions that directly affected U.S. industries such as automotive and defense, driving up costs and increasing supply-chain instability.
This dependence exposed critical vulnerabilities for U.S. national security amid rising trade and technology tensions with the Asian power.
A China-inspired model to counter dependence
To address this scenario, Project Vault adopts elements of the Chinese model, which relies on strong state intervention in financing and leadership of strategic stockpiling.
Like China — which maintains state mineral reserves to stabilize its industrial base — the United States aims to build a supply buffer ensuring priority access for domestic companies.
The plan includes partnerships with mining companies for material sourcing and even participation by partially state-owned firms, marking a shift toward a more active industrial policy away from traditional free-market principles.
While liberal economists criticize the approach as a market distortion, conservative analysts praise it as a key step toward reindustrialization and economic independence.
How Project Vault works and how it is financed
Project Vault is structured as a public-private partnership. Financing combines a 15-year, $10 billion loan from the Export-Import Bank of the United States (Ex-Im Bank) with $1.67 billion in private capital from more than a dozen companies.
Participants include General Motors, Stellantis, Boeing, GE Vernova, Corning and Alphabet (Google), all heavily dependent on critical minerals for electric vehicle manufacturing, wind energy and advanced technology.
These companies will have priority access to the stockpile, securing supply in the event of shortages and avoiding competition in global markets dominated by China.
During the White House announcement, President Donald Trump explicitly compared the initiative to the SPR, saying it would ensure that “American businesses and workers are never harmed by any shortage.” Allied countries are also expected to join, potentially expanding the initiative’s international reach.
In this context, the United States has begun coordinating the project with partner nations, including Argentina, which was invited to participate in the inaugural Critical Minerals meeting led by Secretary of State Marco Rubio.
“It will be an honor to represent our country and work with international partners in strategic supply chains to strengthen cooperation and attract investment to Argentina,” the Argentine delegation said, aligning with the U.S. strategy to broaden its network of trusted suppliers and reduce global supply concentration.
The Strategic Petroleum Reserve: a key precedent
The Strategic Petroleum Reserve, created after the 1973 Arab oil embargo, is the direct precedent for Project Vault. Managed by the U.S. Department of Energy, it can store up to 714 million barrels of crude in underground caverns in Texas and Louisiana.
Its function is to mitigate global supply disruptions — whether from geopolitical conflicts, hurricanes or embargoes — by releasing oil to stabilize prices and ensure energy flows.
The SPR has been used during crises such as the Gulf War (1991), Hurricane Katrina (2005) and Russia’s invasion of Ukraine (2022). Although inventories are currently at historically low levels, it remains a cornerstone of U.S. energy security.
In the case of Project Vault, the framework is adapted to critical minerals such as lithium, cobalt and rare earths, prioritizing industrial and technological uses. Unlike the SPR, the new stockpile incorporates private investment, giving it greater scale and operational efficiency.
Geopolitical implications and domestic debate
Pro-government industry leaders described the plan as “transformational” for strengthening supply chains and national security. Analysts say state backing will attract additional private capital and reduce investor risk.
However, the project is also generating political divisions. While some warn about the risks of state intervention, others view it as essential to eliminate Chinese “bottlenecks” that could constrain U.S. foreign policy.
The debate also includes the possibility of expanding the list of strategic minerals to incorporate copper and uranium, although questions remain about implementation timelines.
Ultimately, Project Vault reflects a paradigm shift in U.S. strategy — moving from external dependence toward internal resilience, paradoxically inspired by the Chinese model. Its impact could redefine the global balance of critical resources, with direct effects on the energy transition and technological competition.