A group of US lawmakers, both Democrats and Republicans, introduced a bill on Thursday to set up a $2.5 billion stockpile of critical minerals. The idea is to reduce reliance on China, which controls a lot of the supply chain, according to Reuters.
The bill is meant to help stabilize prices for minerals used in electric vehicles, tech products, and defense systems. Right now, China has a big influence on the market, and that can make prices swing a lot.
China’s Role in Critical Minerals
China dominates mining and processing of rare earths and other important minerals. It makes about 60 percent of the world’s mined rare earths and controls nearly all of the processing. It also produces a major share of lithium, graphite, and cobalt.
For some minerals, like lithium, China has built up a surplus that pushed prices down. That makes some Western projects unprofitable. In rare earths, China has used export limits before, which pushed prices higher.
The bill is meant to counter this kind of influence. The legislation says it wants to stop China from “weaponizing its influence over prices and volumes.” China denies this and says it is committed to keeping global supply chains stable.
How the Stockpile Would Work
The bill would create something called a Strategic Resilience Reserve. A seven-member board would manage it, similar to how the Federal Reserve is structured. The board could buy and store critical minerals across the US. Recycled materials would be prioritized, but mined minerals could also be included.
The board could sell minerals for commercial or defense use. Money from sales would go back into the fund to keep it running. Allies could participate too if they contribute at least $100 million.
Why Lawmakers Support It
Supporters say the stockpile could help protect US industry from supply disruptions. It could also create a Western price benchmark for minerals, which are currently hard to trade without Chinese influence.
Senator Jeanne Shaheen, a Democrat from New Hampshire, said it is about national security. “Targeted investments and stockpiling key inputs will help insulate the US from foreign threats,” she said. Republican Senator Todd Young and Representative Rob Wittman also back the bill.
The bill still needs to pass the House and Senate and be signed by President Trump.
Context
This comes right after the Trump administration decided not to add new tariffs on critical minerals. Instead, it introduced a supply chain plan with the idea of price floors. This new legislation fits with that strategy: protecting US access to minerals while reducing dependence on China.
