US seeks to break China’s grip on critical minerals with new stockpile

The United States is preparing a large-scale effort to reduce its dependence on China for critical minerals, backing a new stockpiling initiative designed to protect American industry from supply disruptions.

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According to a report by Bloomberg News on Monday, the plan involves establishing a privately driven critical minerals reserve supported by a total of 12 billion dollars in initial capital. The project, known as Private Vault, is intended to act as a buffer for US manufacturers that rely heavily on rare earths and other strategically important materials currently dominated by Chinese supply chains.

Read More: Critical minerals to take centre stage in G7 talks

This news comes after an update on the upcoming G7 meet in Washington next week, where countries will focus on establishing a global asset of critical minerals to overcome China’s dominance.

The US initiative Private Vault is expected to launch with more than 1 billion dollars raised from private investors, alongside a 10 billion dollar loan facility provided by the US Export-Import Bank. Senior administration officials, speaking anonymously, outlined the proposal to Bloomberg. A White House official later confirmed the accuracy of the report to the Daily Caller News Foundation.

If implemented, Private Vault would represent a significant departure from past US stockpiling strategies. While the Strategic Petroleum Reserve was created in the 1970s, when oil production was concentrated in the Middle East, this new effort would be the first time a large-scale reserve of critical minerals is built specifically for the civilian economy and operated through private-market participation.  More than a dozen companies dealing with critical mineral and rare-earth material shortages are likely to take part, including major players from the technology and automotive sectors. 

Rare earths comprise 17 metallic elements that are widely regarded as vital to US national security and economic resilience. Although the United States already maintains a National Defence Stockpile for military requirements, that reserve is not designed to meet civilian industrial demand. Private Vault is intended to fill that gap.

At present, the US imports roughly 80 per cent of the rare earths it uses, with China controlling much of the global mining, processing, and refining capacity. Beijing has demonstrated a willingness to use this dominance as leverage. In 2025, China imposed restrictions on rare earth exports following the introduction of steep tariffs by President Donald Trump, moves that reportedly disrupted American military supply chains.

While supporting the private sector growth,  the US is also exploring additional sources for its own mineral reserves. According to the reports, the Pentagon is considering materials originating from Venezuela, where the state-owned Venezuelan Mining Corporation operates collection centres for cassiterite and coltan. Tantalum, which is extracted from coltan ore and used extensively in electronics and defence applications, is said to be among the materials the Pentagon is seeking to secure.

No doubt, the recent developments highlight the growing concern in Washington over the strategic risks posed by concentrated control of critical mineral supplies and signal a broader push to reshape how the United States secures resources essential to modern technology and defence.

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