US Critical Mineral Inventory Plan Involves Strategic Acquisition of Chinese-Produced Commodities

US Export-Import Bank's Proposed Stockpiling Initiative Aims to Diversify Critical Mineral Supply

The US Export-Import Bank's proposed stockpiling initiative, Project Vault, would initially source critical minerals from anywhere in the world, including China, according to an official involved in the project. The $12 billion project, which combines about $2 billion in private capital with a $10 billion Ex-Im loan, aims to build an immediate buffer against critical mineral supply shocks and send a stronger demand signal to US and friendly-nation producers.

The project's replenishment model would prioritize domestic production first, followed by allied nations and other sources as a last resort. Ex-Im Chief Banking Officer Brian Greeley and representatives of Glencore Plc. and Hartree Partners LP, which will be among trading houses procuring materials for Vault, unveiled some of the first details publicly announced on the project.

Project Vault is President Donald Trump's latest effort to build an alternative supply chain for critical minerals, which are key for the production of electric vehicle batteries, solar panels, and other low-carbon technologies. China is the dominant supplier of critical minerals worldwide.

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The recent panel discussion was the most robust public discussion of Vault since Ex-Im revealed the program in February. For nearly three months, metals investors, traders, and consumers have sought details as the government worked behind the scenes to flesh out the project. Attendees packed a conference room at a hotel in Washington, DC, to get details on Vault's sourcing hierarchy and payment structure.

The program's so-called waterfall would give preference to domestic suppliers even when their material comes at a premium to allied alternatives. Participating manufacturers would be expected to accept that trade-off as part of joining the program. The initial stockpile fill, however, would be driven chiefly by availability, reflecting the reality that some of the roughly 60 minerals under consideration are produced only in limited geographies and remain heavily influenced by China.

Vault is being structured as a demand-driven vehicle rather than a government-directed stockpile. Manufacturers would determine which minerals are stored, with the program then working with traders to secure supply. This approach is designed to give US firms more leverage in opaque and fragmented markets where individual buyers often struggle to source smaller volumes efficiently or at transparent prices.

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On storage, Greeley said the project will begin by relying on warehouse networks already controlled by trading partners and procurement providers. Over time, Vault is expected to develop its own storage network, either by building facilities or leasing them. A mature system could combine its own sites with third-party warehouses. Specialist traders would also be used to handle individual metals, allowing traders with relationships in cobalt, rare earths, or other niche material sectors to handle those flows. The goal is to preserve pricing discipline, improve execution, and avoid creating a scramble for hard-to-find materials.