US Critical Mineral Inventory Plan Includes Buying China Metals

The stockpiling initiative proposed by the U.S. Export-Import Bank would initially source critical minerals from anywhere in the world, including China, an official involved in the project explained.

The $12 billion Project Vault will then shift to a replacement model that prioritizes domestic production first, then allied countries and other sources as a last resort, executives including Ex-Im Banking Chief Brian Greeley said Wednesday as they announced some of the first publicly released details about the project. Greeley spoke alongside representatives of Glencore Plc. and Hartree Partners LP, which will be among the trading companies supplying materials for the Vault.

The project aims to create an immediate buffer against critical mineral supply shocks while using future purchases to send a stronger demand signal to U.S. and friendly country producers.

Vault, which combines nearly $2 billion in private equity with a $10 billion Ex-Im loan, is President Donald Trump’s latest effort to create an alternative supply chain for materials key to the production of electric vehicle batteries, solar panels and other low-carbon technologies. China is the dominant supplier of critical minerals worldwide.

The final panel was the Vault’s most robust public discussion since Ex-Im announced the program in February. For nearly three months, metal investors, traders and consumers searched for details as the government worked behind the scenes to detail the project.

Attendees filled a conference room at a hotel in Washington, D.C., to hear detailed information about the Vault’s resource hierarchy and payment structure. The so-called waterfall feature of the program will give preference to domestic suppliers even if their materials are more valuable than allied alternatives, panelists said, and participating manufacturers are expected to accept this trade-off as part of joining the program.

However, initial restocking will depend mainly on availability; This reflects the fact that some of these approximately 60 minerals are produced only in limited geographies and, in some cases, are heavily influenced by China.

Vault is structured as a demand-driven tool rather than a government-directed stockpile, panelists said. Producers will determine which minerals to store through the program and then work with traders to secure supplies. It is designed to give U.S. companies greater leverage in opaque and fragmented markets where individual buyers often struggle to source smaller volumes efficiently or at transparent prices.

As for warehousing, the project will begin by relying on networks of warehouses currently controlled by commercial partners and purchasing providers, Greeley said. Over time, Vault is expected to develop its own storage network by building or renting facilities. A mature system can combine its own facilities with third-party warehouses.

The use of expert traders will also be customized to individual metals, panelists said. Rather than submitting orders to an open bidding process, Vault is expected to match supplies with firms with expertise in specific markets, allowing traders with relationships in cobalt, rare earths or other niche materials sectors to manage those flows. The goal is to maintain pricing discipline, improve enforcement and avoid creating confusion for hard-to-find materials, panelists said.

With the help of Jacob Lorinc.

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