It took the United States many years to address the energy crisis of the 1970s by establishing a strategic petroleum reserve, and now a similar approach is being applied to rare earth elements.

America’s Emergency Oil Reserve Inspires New Push for Critical Minerals Stockpile

Deep beneath the coastal regions of Texas and Louisiana, vast underground salt caverns hold the world’s largest emergency crude oil reserve—a vital asset for the United States. For fifty years, the Strategic Petroleum Reserve (SPR) has enabled the U.S. government to manage international relations and stabilize fuel prices during supply crises. Recognizing its significance, the Trump administration now plans to establish a similar reserve, this time focusing on what many experts call the “new oil and gas”: rare earth elements and other critical minerals.

Introducing Project Vault: A New Strategic Stockpile

According to a Bloomberg report, President Donald Trump is moving forward with Project Vault, a major initiative to create a national stockpile of essential minerals. The plan involves a $10 billion loan from the U.S. Import-Export Bank, supplemented by $1.67 billion in private investment. The White House has confirmed the existence of this ambitious project.

This effort is the latest in a series of actions by the Trump administration to ensure a steady supply of critical minerals for American industries, making resource security a central pillar of both manufacturing and foreign policy.

Lessons from the Past: The Birth of the Strategic Petroleum Reserve

The United States has a long history of safeguarding valuable resources to shield itself from global instability. The concept of an emergency oil reserve dates back to 1944, but it wasn’t until the oil embargo of 1973–1974—when Middle Eastern and North African oil producers, along with Venezuela, cut off exports in retaliation for U.S. support of Israel—that the idea became reality. The resulting fuel shortages and soaring prices led to economic stagnation and inflation, a period known as “stagflation.”

Although the crisis eventually subsided, its impact lingered. In 1975, President Ford authorized the creation of the SPR, and by 1977, the first barrels of oil were delivered to storage sites in the southeastern United States.

Modern Threats: Securing Critical Minerals

Just as a handful of oil-producing nations once disrupted global energy supplies, today’s analysts warn that America’s dependence on critical minerals—many of which are dominated by China—poses a similar risk. China currently controls the majority of production and processing for these essential materials.

Critical minerals encompass a broad array of resources, such as lithium, cobalt, gallium, and rare earth elements, which are often difficult to extract and refine. These materials are indispensable for advanced electronics, automotive manufacturing, computing, and energy technologies. Project Vault aims to stockpile these minerals for major U.S. companies, including Google, General Motors, and Boeing, as reported by Bloomberg.

America’s Position in the Global Minerals Race

The United States has lost ground to China in securing global supply chains for critical minerals. While China’s domestic production is relatively modest, it controls between 40% and 90% of global processing capacity, depending on the mineral, according to a 2023 report by the Center for Strategic and International Studies. This dominance is the result of a long-term industrial strategy that secured mining interests across Africa, South America, and Southeast Asia.

• China is the leading producer of 29 out of 50 minerals identified as critical by the U.S. Geological Survey.
• The U.S. relies entirely on imports for 12 of these minerals and is more than 50% import-dependent for another 29.

Geopolitical Tensions and Supply Chain Vulnerabilities

China has already demonstrated its leverage over mineral supply chains. Starting in 2023, the Chinese government imposed export controls on minerals vital for semiconductor and telecom industries. While some restrictions have since been lifted or modified, the U.S. remains acutely aware of its resource vulnerability. As early as 2020, President Trump declared the nation’s reliance on foreign minerals an “unusual and extraordinary threat.”

Recent U.S. Initiatives to Secure Mineral Supplies

Since returning to office, President Trump has taken decisive steps to strengthen America’s control over critical minerals. Recent actions include:

• A $1.6 billion investment in Rare Earths USA, a key supplier.
• The Department of Defense’s $400 million purchase of preferred stock in MP Materials, making the government its largest shareholder.
• Ongoing interest in acquiring Greenland, which holds the world’s eighth-largest rare earth reserve.

International Collaboration and Global Trends

Last month, the White House issued an executive order promoting international cooperation to secure mineral supply chains and expand domestic processing. This week, Washington will host a summit with officials from the U.K., EU, New Zealand, and other partners to discuss forming a strategic alliance for critical minerals.

The concept of a strategic reserve is gaining traction globally. Australia, for example, recently announced plans for an $800 million reserve to protect its own supply of minerals crucial for advanced manufacturing.

This article was originally published on Fortune.com.