US Bill Targets China with $2.5B Critical Minerals Reserve
Ukadike MichealUS lawmakers propose a $2.5B mineral reserve, challenging China's monopoly and aiming to set Western prices.
A bipartisan group of U.S. lawmakers has introduced a bill to establish a $2.5 billion strategic reserve for critical minerals. The proposal aims to stimulate domestic mining and refining to counter China's near-monopoly on the global supply, processing, and pricing of these essential resources.
The legislation directly addresses concerns that China has "weaponized its influence over prices and volumes" in the minerals market. According to the bill's text, the primary objective is to "insulate the U.S. from foreign threats."
How the Strategic Resilience Reserve Would Work
The proposed entity, named the Strategic Resilience Reserve, would be managed by a seven-person board with a governance structure modeled on the Federal Reserve.
Board members would be appointed by the President and confirmed by the Senate. Their core responsibility would be to authorize the purchase of critical minerals that U.S. government agencies deem strategic. These acquired minerals would then be stockpiled in warehouses located within the United States.
"Providing targeted investments and stockpiling key inputs will help insulate the U.S. from foreign threats and will provide a significant – and cost effective – boost to the U.S. economy," stated Senator Jeanne Shaheen, a Democrat from New Hampshire.
Forging a New Western Price Benchmark
If enacted, the reserve could play a crucial role in establishing a Western-based pricing standard for critical minerals, free from Chinese market influence. A Senate aide commented on this possibility, telling Reuters, "It's certainly possible this reserve could create a Western price for certain critical minerals."
This legislative effort builds on previous actions to secure domestic mineral supplies. Last year, the Trump Administration began acquiring minority stakes in North American rare earth and lithium companies. In a parallel move, the U.S. Army is also developing small-scale refineries to guarantee a domestic supply of critical minerals for national defense purposes as the United States and its allies work to reduce their reliance on China.
