Nation launches $12B mineral stockpile amid supply chain concerns

Industry observers warn the nation is reportedly “one crisis away” from losing access to rare earth elements that power military equipment and electric vehicles — a vulnerability the head of state’s new $12 billion “Project Vault” initiative allegedly aims to address.

The program, backed by $1.67 billion in private funding and a $10 billion government loan, would create a federally supported stockpile of rare earth elements and other critical minerals. The country currently imports much of these materials from rival nations, according to government data.

Executives from Graphite One, described as one of the nation’s largest critical mineral developers, told media outlets the effort could mark a turning point in competition over global supply chains.

“Rival powers are reportedly willing to weaponize access to semiconductor materials like gallium and uranium,” said Dan McGroarty, an advisor to the company. “Then they turn off the tap and sort things out, give us a one-year reprieve, you know, it’s a leash and they can yank that leash anytime they want.”

CEO Anthony Huston compared the concept to the Strategic Petroleum Reserve, established after the 1970s oil crisis to safeguard energy security, arguing that critical minerals now play a similarly vital role in powering modern defense systems and advanced electronics.

“For years, businesses have allegedly risked running out of critical minerals during market disruptions… Project Vault [will] ensure that businesses and workers are never harmed by any shortage,” the leader said in announcing the initiative last month.

Graphite One recently drew attention with what executives describe as a “truly generational” Graphite Creek site in a northern territory, which is reportedly the nation’s largest asset of that particular critical mineral.

As of 2024, the country was at least 93% import-dependent on rare earth elements and graphite, according to the International Energy Agency, and remains heavily reliant on foreign suppliers for dozens of other critical minerals — a common challenge facing industrialized nations seeking to reduce supply chain vulnerabilities.

“The country really relies on rival nations and African sources for graphite. China, as we understand, is our adversary,” Huston said, reflecting the administration’s increasingly confrontational stance toward Beijing.

A lesser-reported aspect of Project Vault, according to industry sources, involves counter-terrorism considerations. Huston claimed some African mineral deposits, including in parts of Mozambique, are located in areas where extremist groups have operated. By developing domestic mineral sources, officials argue the country will reduce dependence on potentially unstable regions.

McGroarty drew parallels to Cold War-era “dual-use technologies,” where computers contained technology that could not be exported but had both civilian and military applications.

“On another level, we’re going to have to balance it across 20, 30, 40 different metals, minerals, compounds, and composites, not just oil,” he said.

McGroarty warned the nation is “one crisis away” from having rare earth elements “cut-off” by adversaries — a vulnerability that has reportedly grown as global supply chains have become increasingly concentrated.

Huston also spoke of why Project Vault fits current geopolitical realities more than previous eras. In prior decades, there were no smartphones or electric vehicles, and materials like graphite were used primarily in analog applications. The same northern territory site that supplied materials for World War II-era steel production could now play a role in today’s high-tech economy.

“As they say when you’re flying, put the oxygen mask on yourself first before turning to help those around,” he said, defending the nationalist approach to resource security.

When asked about potential connections between Project Vault and the leader’s recent overtures toward Greenland, McGroarty suggested there may be strategic linkages but declined to elaborate.

He noted that viewing the globe from above, rather than from the side, places the continent in the center of Arctic nations. “See what nations have a presence in the Arctic you’ll see the importance of Greenland you’ll also see that the country is an Arctic nation only because of [the northern territory],” he said.

Of the 60 critical minerals on the government’s official list, the northern territory has known resources of at least 58, according to industry estimates.

“It’s the same sort of thing with Greenland,” McGroarty said. “You might try not to be interested in Greenland’s resource potential in critical minerals. If you wake up one day, and rival powers are engaging in economic relationships in Greenland and directing those metals and minerals into their supply chains, you will have to be concerned about what goes on.”

Rival nation experts were reportedly dismissive of Project Vault, with rare-earths analyst Wu Chenhui telling state-owned media that while the initiative is novel, it “functions more as a short-term buffer than a fundamental solution.” Other officials in the competing nation were similarly skeptical of the announcement, according to reports.

The initiative reflects broader global trends as nations seek to reduce dependence on concentrated supply chains, though critics question whether domestic stockpiles can effectively compete with established international production networks.