Why in the News?
Donald Trump announced Project Vault, a 12 billion dollar US initiative to stockpile critical minerals and rare earth elements to protect American industries from global supply disruptions and reduce dependence on China.
What is Project Vault?
- A public private partnership to buy and store critical minerals
- Focuses on rare earths and key metals used in defence, technology and manufacturing
- Combines 1.67 billion dollars private funding with 10 billion dollars from the Export Import Bank of the United States
- Aims to shield US companies from supply chain shocks
Key Minerals Covered
- Cobalt used in rechargeable batteries and military jet engines
- Gallium essential for semiconductors and advanced electronics
- Other rare earths critical for EVs, aerospace, smartphones and energy systems
How the Stockpiling System Works
- Companies commit in advance to purchase minerals at a fixed inventory price
- Project Vault procures and stores minerals on their behalf
- Firms pay upfront fees and carrying costs including storage and interest
- In emergencies, companies can access their full stockpile
| [2023] About three-fourths of world’s cobalt, a metal required for the manufacture of batteries for electric motor vehicles, is produced by:Â
(a) Argentina (b) Botswana (c) the Democratic Republic of the Congo (d) Kazakhstan |
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