In a strategic move aimed at reshaping the global supply chain, US Vice President J.D. Vance announced an ambitious American initiative to establish a global system that would set a minimum price for essential commodities during a high-level meeting with representatives from more than 50 countries. This announcement comes as Washington and its allies seek to bolster energy security and mitigate the economic risks associated with global market volatility.
Details of the American proposal
In his speech, Vance explained that the United States is leading efforts to establish a trade cartel specializing in critical minerals, noting that several countries have already given their initial approval to join the initiative. The "minimum price" concept aims to protect producers in allied countries from price dumping practices or extreme market volatility that could bankrupt Western mines and smelters, thus ensuring the sustainability of investments in this vital sector.
Project "Volt" and the strategic stockpile
This diplomatic move complements recent executive actions by the US administration, including President Donald Trump's launch of Project Volt. This ambitious project aims to build a national strategic reserve of critical minerals, backed by initial funding of $10 billion from the US Export-Import Bank, in addition to raising $2 billion in private financing. This initiative is seen as an attempt to replicate the strategic petroleum reserve, but in the minerals sector, which has become the backbone of modern industries.
Geopolitical context: Disengagement from Chinese hegemony
This proposal cannot be viewed in isolation from the global economic struggle, as this initiative directly aims to reduce over-reliance on China. Beijing currently controls dominant shares in the extraction and processing of many rare earth minerals, lithium, and cobalt. By guaranteeing fair and stable prices, Washington hopes to encourage Western companies and allied nations to make long-term investments in mining and processing operations without fear of price collapses that could be triggered by a sudden surge in supply from competitors.
Economic and security importance
Critical minerals are of paramount importance in the 21st century, playing a central role in advanced industries such as electric vehicle batteries, wind turbines, and semiconductors, as well as in the defense and military sectors. Therefore, ensuring stable access to these resources is not merely an economic imperative, but a cornerstone of U.S. and global national security, guaranteeing that supply chains are not used as tools for political leverage in the future.
