EXIM provides a $10 billion loan to support the US critical minerals supply chain via Project Vault

The US Export-Import Bank (EXIM) is providing $10 billion in financing to back “Project Vault,” a $12 billion fund aimed at building a strategic reserve of rare earths and critical minerals. 

President Trump announced this program to reduce U.S. dependence on foreign suppliers, especially China, and to address risks from supply chain disruptions and price manipulation in critical mineral markets.

Project Vault aims to create a stockpile of critical minerals, raw ore, and refined ore necessary for electric vehicles (EVs), electronics, aerospace, and defence systems. The main goal here is to boost national security and economic resilience by reducing reliance on concentrated foreign sources, particularly China, which currently controls global supply chains and pricing.

The fund targets maintaining a minimum 60-day emergency supply of key minerals, ensuring availability for original equipment manufacturers (OEMs) across multiple sectors, including automotive, technology, energy, industrial, and defence industries.

EXIM leading the financing for the project

The fund’s total seed capital is approximately $12 billion, composed of a 15-year, roughly $10 billion loan from EXIM and about $1.67 billion in private equity investment. 

Private capital partners and commodities traders will play a critical role in financing and managing procurement activities. This public-private partnership model leverages market expertise to optimise sourcing and inventory management while enabling the government to focus on strategic oversight.

On this, John Jovanovic, EXIM Chairman, said, “Project Vault is designed to support domestic manufacturers from supply shocks, support US production and processing of critical raw materials, and strengthen America’s critical minerals sector. Thanks to President Trump’s leadership, the US Strategic Critical Minerals Reserve will help manufacturers in the United States compete, grow, and lead globally while creating jobs domestically, strengthening our economy, and advancing the national interest.”

Even, US Vice President JD Vance quoted the importance of critical minerals during the inaugural Critical Minerals Ministerial, which is hosted by the US on 4th February. He said, “As much as we talk about the modern and digital economy, President (Trump) said something very important that should inform how we think about the future of growth- as much as data centres, technology and all the in credible things we are working on matter, fundamentally you still have an economy that runs on real things. There is no realer thing than oil- and I would add to that– there is no realer thing than critical minerals.”

“We are all in the same team and growing in the same direction. We have close to 2/3rds of the world’s GDP represented. We have the capacity to make ourselves more independent and more self-reliant,” he added.

What is operational design?

Project Vault’s stockpile will be available to member manufacturers who pay upfront fees and agree to buy minerals at set prices. Members include major companies like General Motors, Stellantis, Boeing, Corning, GE Vernova, Google, and Clarios.

The program’s governance structure may include a board seat for EXIM to oversee loan utilisation and operations. Manufacturers will cover ongoing costs for loan interest and storage, while user fees and commitments will be organised to repay EXIM’s debt over 15 years.

Members can draw from their allocated inventories and replenish them as needed. In cases of severe supply disruptions, access to the broader stockpile will be permitted, reinforcing the fund’s role as a strategic buffer.

The fund will utilise the financing to purchase and store critical minerals through established trading firms such as Traxys, Mercuria, Hartree Partners, and others.

Procurement efforts will prioritise sourcing from i) US domestic mines and processors ii) allied countries, including Australia, Canada, and Brazil iii) secondary markets such as Chile, Argentina, South Africa, and Europe.

While there is no categorical exclusion of Chinese products, the complexity of global supply chains means some materials may involve Chinese processing steps, such as refining. Where commercially viable non-Chinese sources are unavailable in the short term, reliance on Chinese-origin materials may occur, reflecting pragmatic sourcing realities.

The fund’s financial model is designed to recover costs through user fees and offtake agreements with participating manufacturers. These fees cover loan servicing and storage expenses, ensuring the sustainability of the stockpile over the loan’s duration.

EXIM’s exposure is senior to the private equity invested and secured by the inventory value and contracted offtake from manufacturers, mitigating risk for the bank and investors.

Strategic implications of Project Vault

On 2nd February, EXIM Chairman John Jovanovic joined President Trump and other officials to announce Project Vault, a supply chain security initiative aimed at creating the US Strategic Critical Minerals Reserve. 

This public-private partnership will store essential raw materials in various facilities across the country.

Scott Strazik, Chief Executive Officer of GE Vernova, said, “As we rise to the challenge of meeting America’s and the world’s rapidly growing needs for key power and grid equipment, the need to grow supply chains and access to critical minerals has never been more important.  We’re thankful for the historic leadership around Project Vault, a timely initiative that will advance more access to affordable, reliable power and strengthen energy security for American families, communities and partners.”  

Brian Falik, President of Mercuria Energy Americas, also added, “Project Vault represents a transformative approach to strategic sourcing, and Mercuria is honoured to contribute to this historic effort. By aligning private capital with national security objectives, we’re reinforcing the foundations of American manufacturing and ensuring long-term access to critical raw materials. This partnership is a testament to what’s possible when industry and government move decisively together”

“Traxys is proud to be a critical minerals supplier for Project Vault. This groundbreaking initiative of EXIM Bank and the US  government, which establishes an US Strategic Critical Minerals Reserve, bolsters the supply chain of critical minerals for American manufacturers and enhances national economic security,” noted Mark Kristoff, Chief Executive Officer of Traxys.

Stephen Hendel, Founding Managing Partner of Hartree, quoted, “Hartree is pleased to be a leading participant in this landmark transaction and congratulates EXIM and all partners on an exceptional achievement. Project Vault demonstrates the power of innovative public-private partnerships to strengthen US industry and supply-chain resilience. This initiative reflects Hartree’s longstanding commitment to supporting American industrial end-users and manufacturers, and we look forward to supporting its long-term success.”

Adam Muellerweiss, Vice President of Strategic Initiatives of Clarios, stated, “The US Strategic Critical Minerals Reserve is an essential and unprecedented step in securing critical minerals supply chains for US manufacturing now and for generations to come, and Clarios is honoured to work with the Trump Administration to stand up this vital initiative.”

“Boeing strongly supports the Trump Administration’s efforts that strengthen supply chain resilience for critical minerals and bolster American manufacturing competitiveness. We thank Chairman Jovanovic and the EXIM Board for their leadership and focus on strengthening the US industrial base and protecting jobs,” quoted Jeff Shockey, Executive Vice President, Government Operations, Global Public Policy and Corporate Strategy of Boeing.

Project Vault is a landmark effort to secure critical mineral supplies vital to the US economy and national security. By combining substantial public financing with private sector expertise and capital, the initiative aims to create a resilient supply chain buffer against geopolitical risks and market volatility.