US launches $12bn critical minerals stockpile

The United States has unveiled plans for a $12 billion strategic stockpile of critical minerals, marking a significant shift in how Washington approaches infrastructure security and industrial resilience. The initiative reflects growing concern over supply chain vulnerability as demand for raw materials accelerates across energy, technology and defence sectors.

The programme, provisionally known as Project Vault, is designed to secure long-term access to minerals essential for modern infrastructure, including lithium, nickel and rare earth elements. These materials underpin a wide range of assets, from electric vehicle batteries and renewable energy systems to data centres, semiconductors and military equipment. By building a national reserve, the administration aims to reduce exposure to geopolitical risk and market disruption.

Funding for the stockpile will combine public and private capital. A substantial loan facility will be provided through a government-backed lender, complemented by private sector investment. Commodities trading firms are expected to manage procurement and storage, drawing on global sourcing networks and logistics expertise to acquire materials and hold them in reserve. The structure mirrors strategic stockpiles in other sectors, but applies the concept to minerals that have become critical bottlenecks in infrastructure development.

The move is closely tied to concerns about concentration of supply. China dominates much of the global processing and export of rare earths and other strategic minerals, leaving infrastructure projects in the US exposed to price volatility and potential restrictions. A domestic stockpile is intended to provide a buffer, smoothing supply during periods of disruption and supporting planning for large, capital-intensive projects with long timelines.

For infrastructure developers, the initiative could offer greater certainty around input availability. Major investments in clean energy, electrification and advanced manufacturing depend on predictable access to materials that are often subject to long lead times and limited alternative sources. A central reserve may help stabilise costs and reduce delays caused by supply shortages.

The plan also signals a broader shift in infrastructure policy. Securing upstream materials is increasingly seen as integral to project delivery, not separate from it. Governments are moving beyond funding physical assets alone to addressing the supply chains that sustain them.

While questions remain around pricing risk and long-term management, the stockpile underscores how infrastructure strategy is expanding to include resource security. As global competition for critical minerals intensifies, control over material flows is becoming as important as the infrastructure built from them.

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