Governments are rushing to hoard metals in ‘resource nationalism’ era

A new race to secure critical minerals is unfolding across the global economy.

From Washington’s proposed $12 billion Project Vault stockpile to expanding buffers in Asia and the European Union, governments are moving to secure access to metals increasingly viewed as essential to national security and industrial policy.

“In metals and minerals is where the newest wave of stockpiling is most visible,” said Patrick Schröder, senior research fellow at Chatham House. Governments are seeking to reduce exposure to concentrated supply chains and export controls, he said.

In the U.S., officials recently outlined a roughly $12 billion strategic mineral reserve dubbed Project Vault. The initiative aims to bolster supply-chain resilience for American industry by building stockpiles of rare earths and other essential metals for electrification, defense and advanced manufacturing.

Project Vault complements other initiatives such as the “Forum on Resource Geostrategic Engagement (FORGE),” a partnership to coordinate critical mineral policy pricing and projects, as well as Pax Silica, which centers on safeguarding the AI-related supply chain.

Australia in January announced plans to formalize a state-backed stockpiling strategy through an $800 million strategic critical minerals reserve, prioritizing antimony, gallium and rare earth elements.

The European Union is also advancing plans to build a joint reserve of critical raw materials under its RESourceEU strategy. Italy, France and Germany are expected to lead the effort, Reuters reported earlier this month, citing sources familiar with the matter.

As recently as last weekend, India and Brazil agreed to deepen cooperation on critical minerals and rare earths, as New Delhi seeks to diversify supply sources and reduce reliance on China. The pact is aimed at strengthening bilateral trade and building more resilient supply chains for materials critical to clean energy, technology and defense industries.

South Korea earlier this year rolled out a comprehensive critical minerals strategy backed by about $172 million in state support. Under this strategy, the government plans to expand stockpile volumes and infrastructure.

“We certainly see a shift to a more resource nationalist mindset amongst many countries,” said Schröder. “At this point, it’s a slippery slope and strategic stockpiling could become hoarding when measures become coercive, lack transparency and become weaponized.”

‘Resource nationalism’ in the works?

The strategic pivot marks what several analysts describe as a structural shift in commodity policy.

“Metal supply chains are fragile,” said Ewa Manthey at ING, pointing to years of underinvestment, long timelines…