KATHMANDU: The US government has announced Project Vault, a new strategic reserve aimed at securing rare earths and critical minerals used in automobiles, EVs, and advanced manufacturing, according to The White House.
The initiative, established through an executive order signed by President Donald Trump, is designed to reduce America’s dependence on China-dominated supply chains.
The project will be backed by a $12 billion investment, with $10 billion financed through the Export-Import Bank and $2 billion from the private sector. The reserve will function as a public-private partnership, storing key raw materials at facilities across the United States.
The move follows China’s export restrictions on rare earth elements in April last year, which disrupted global auto supply chains and forced some manufacturers to temporarily halt production. While supply conditions have since improved, US officials say long-term dependence on China remains a risk.
The administration also plans to speed up mine permitting and sign critical mineral supply deals with partner countries. GM CEO Mary Barra, present at the signing, said a resilient supply chain is vital for the auto industry, noting its importance for both conventional vehicles and EVs.
Although politically framed against EV mandates, the initiative is expected to directly support EV production by ensuring stable access to essential battery and motor materials.
