Demand-led Reserves: Mercuria & Glencore Join US’ VaultCo

The US’ planned strategic minerals reserve Project Vault has transitioned into its execution phase as it introduces the mining companies set to be its founding partners.

The Switzerland-based traders Mercuria and Glencore have each committed US$500m to the partnership. Alongside fellow anchor partners Traxys and Haytree, the companies will source, procure and deliver the 60 critical minerals required for the reserve, including rare earth minerals, lithium and copper. 

Now operating as VaultCo, a private enterprise, Project Vault was launched by the US government in February 2026. Alongside capital investments from its manufacturing partners, the operation is backed by US$10bn in financing from the US Export-Import Bank.

VaultCo envisions a new model for critical materials stockpiling: one that integrates public and private inputs to build reserves explicitly for commercial manufacturing. 

“VaultCo is an innovative approach to strengthening supply chain resilience,” says Jyothish George, Head of Marketing for Metals and Bulks at Glencore. “We are pleased to support critical minerals security and help ensure American industry has access to the materials it needs.”

“Glencore’s participation in this initiative reflects our longstanding role connecting global production with industrial consumers and our commitment to supporting resilient and diversified supply chains for critical minerals.”

Critical mineral inventories: an industrial concern 

A primary vulnerability for Western industrial bases lies in midstream processing: smelting, refining, metallisation and chemical conversion. 

Foreign markets currently process over 70% of global lithium, 80% of cobalt and up to 90% of rare earth elements. The US’ dependence on overseas refinement has registered as a danger to its domestic industrial production at large, as geopolitical tensions threaten to bottleneck supply chains. 

VaultCo recognises that the issue extends beyond mining, with consequences across all levels of industry. Its goal is to develop a safe, stable supply of critical minerals for American manufacturers, reducing reliance on exports. 

“Mineral security is national security,” says Brett B. Lambert, VaultCo’s Executive Chair. The project leader celebrated Mercuria and Glencore’s commitments as a “milestone” for the stockpile’s development.

Though VaultCo was initiated in response to dwindling defense stockpiles, the project has since germinated into a reserve set to fortify US industrial productivity – forming an immense back-up of resources for domestic manufacturers to bridge funding gaps and support US output through periods of geopolitical instability. 

“Minerals are critical to the modern US economy,” says Brian A. Falik, Chief Investment Officer at Mercuria Americas. 

“With our Project Vault participation, Mercuria is supporting a US government and EXIM-backed structure that gives US industry greater supply certainty and reduces exposure to global market disruptions.”

A new model for strategic inventories

Glencore and Mercuria’s partnership with VaultCo represents a fundamental shift in how strategic material reserves are procured and deployed globally. 

Traditional sovereign reserves – like the National Defense Stockpile – rely on government procurement bodies operating under statutory frameworks, and are tailored towards federal commitments.

Though it benefits from the national-scale financial backing of EXIM, VaultCo is an independent private company as opposed to a governmental programme. EXIM’s US$10bn loan operates as a long-term debt, allowing VaultCo to take advantage of the funding without the US government requiring direct equity. 

The project’s independence from federal institutions insures its operations against disruption during periods of political turnover, maintaining steady access to critical materials for off-takers and ensuring material commitment decisions rest with partnered suppliers.

By integrating global commodity traders into its architecture, VaultCo can harness pre-existing infrastructure and industrial networks to reduce cost, time and knowledge barriers as it sources its material supply. 

Glencore and Mercuria operate trading offices in a combined 50 countries worldwide. Through their partnership, VaultCo gains instant access to the companies’ global web of storage facilities, port terminals, refining facilities and smelters. 

When it comes to the challenge of integrating into trade networks to secure wider participation, the anchor companies’ decades of experience and investment across various sectors – including steel, transport and battery manufacturing – lend VaultCo a distinct advantage which traditional government-operated stockpiles lack. 

Key partners for VaultCo

Glencore

Founded in 1974 and based in Baar, Switzerland, Glencore is a multinational commodity trading and mining giant operating across 35 countries. Listed on the Forbes Global 2000 list, it employs over 150,000 workers worldwide. The company is renowned for integrated industrial production and large-scale physical marketing across transition metals, energy products and critical minerals.

Mercuria

Established in 2004 and headquartered in Geneva, Switzerland, Mercuria Energy Group is one of the world’s largest independent energy and commodities trading houses. Operating globally, it is known for physical trading, risk management and strategic investments across power, natural gas, crude oil and energy transition metals.

Traxys

Formed in 2003 when management bought Arcelor’s Considar and Umicore’s Sogem trading arms, backed by Pegasus Capital and Kelso, Traxys is based in Luxembourg. In 2008 it helped acquire Molycorp, owner of Mountain Pass, America’s only rare earth mine, and sponsored its 2010 initial public offering. In VaultCo, it is an original supplier, procuring and managing materials entering the reserve.