It is Valentine’s Day, and we love nothing more than advanced technology that transcends all understanding. The U.S. has been known for research and development of such technology, especially regarding Artificial Intelligence (AI). Now, America has unveiled the so-called ‘doomsday vault.’ As the U.S. Scouts motto goes, “Be prepared,” and that is what America has quietly been doing as it anticipated the next ‘imminent crisis.’
A crisis that has a global impact
Climate change is a significant global crisis, as it impacts several sectors worldwide, namely food, water, health, energy, and security. Mitigating the effects of climate change has thus never been more important than it is right now. Now, it is common public knowledge that the global adoption of renewable energy technologies, such as solar panels and wind turbines, is key to addressing this global crisis.
However, what may be less common knowledge is that these technologies are highly reliant on critical minerals. According to a report by ICMM, a mineral can be considered “critical” when it plays a key role in economic and technological advancement, but faces supply risks. In the case of the clean energy transition, such minerals include:
- Nickel
- Cobalt
- Lithium
- Copper
- Rare earth elements
The first three are essential in battery production for renewable energy storage, copper is vital for transmission infrastructure, and the latter is crucial for electric motors and wind turbine magnets. America is anticipating an ‘imminent’ crisis, and has taken matters into its own hands by investing in a strategic marvel.
The ‘doomsday vault’: A strategic U.S. marvel
It is no secret that the U.S. has trailed behind China when it comes to rare earth element production, and the U.S. has faced challenges in decoupling supply chains in the past. Now, these challenges may be a thing of the past, as President Trump, senior government officials, Cabinet Secretaries, and John Jovanovic, the Chairman of the Export-Import Bank (EXIM), have announced “Project Vault” on February 2.
EXIM approved a $10 billion loan for this strategic project to ensure long-term funding. Key role players in the construction of Project Vault so far include, but are not limited to:
- Hartree Partners
- Traxys
- Mercuria Americas
- Clarios
- GE Vernova
- Boeing
- Western Digital
The primary goal of this vault, according to Jovanovic, is:
“…to support domestic manufacturers from supply shocks, support U.S. production and processing of critical raw materials, and strengthen America’s critical minerals sector.”
“Be Prepared”: From an American motto to a lifeline
According to reports from the UN Environment Programme and the International Energy Agency, experts predict that the pressure to meet climate targets could lead to an increased global demand for critical minerals, potentially increasing the demand for critical minerals sixfold. Seeing as the U.S. ranked second-to-last in new developments, this is a crucial breakthrough.
GE Vernova’s CEO, Scott Strazik, emphasized the importance of boosting supply chains and critical mineral access as quickly as possible. He added in his statement EXIM’s website that:
“We’re thankful for the historic leadership around Project Vault, a timely initiative that will advance more access to affordable, reliable power, and strenghten energy security for American families, communities, and partners.”
Digital technology’s power demands continue to grow at an exponential rate, making the clean energy transition extremely urgent. So, America’s so-called “doomsday vault” may thus not be such an illogical move afterall. In fact, as geopolitical tensions continue to cause friction and result in trade restrictions, this could be one of the best strategic moves in history. This decision may finally help the U.S. to shift its dependence away from China once and for all.
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