PIIE this week released a new policy brief arguing that Project Vault’s hybrid public-private design for stockpiling critical minerals raises serious concerns about voluntary participation, operational complexity, and the risk that the programme will fail precisely when it is most needed.
The policy brief states that To be effective, Project Vault should require mandatory participation with fees scaled to firm size, fund against worst-case collective supply shocks, and prioritise processed materials over raw ore.
PIIE stated:
Storing 60 highly differentiated minerals and processed derivatives is far more complex than stockpiling oil because supplies can degrade over time and often need to be processed to be usable during a crisis.
To be effective, Project Vault should require mandatory participation with fees scaled to firm size, fund against worst-case collective supply shocks, and prioritize processed materials over raw ore.
In the near term, building reserves of processed materials would likely depend on Chinese suppliers, making long-term investment in US and allied processing capacity critical.
.
Read the full policy brief: Strengthening Project Vault: US plan to stockpile critical minerals