Proposed U.S. Legislation Targets $2.5 Billion Critical Minerals Stockpile

A proposed U.S. bill seeks to reduce American dependence on foreign—particularly Chinese—suppliers of critical minerals by establishing a Strategic Resilience Reserve. The initiative comes amid concerns that China is leveraging its dominance in key minerals to influence global prices and supply volumes.

Recent market disruptions underscore these concerns. A lithium oversupply driven by Chinese production forced Albemarle to pause U.S. expansion plans in 2024, while the U.S. Department of Defense became the largest shareholder in MP Materials as competition from China intensified.

The proposed reserve would be governed by a seven-member board modeled after the Federal Reserve, with members appointed by the president and confirmed by the Senate. The board would be responsible for purchasing and stockpiling minerals deemed critical by U.S. agencies, prioritizing recycled materials while allowing mined supply as well. Allied countries could participate by contributing at least $100 million.

The reserve would have flexibility in procurement, including the ability to pay above-market prices to support domestic mining and processing. Lawmakers and aides suggest this could eventually help establish non-Chinese price benchmarks for certain critical minerals, some of which are lightly traded or subject to Chinese export controls.

Minerals from the reserve could be sold to private industry or for defense needs, with any profits reinvested to maintain the stockpile indefinitely. Supporters argue the initiative would strengthen national security, stabilize supply chains, and provide long-term economic benefits. Similar reserve strategies are also being explored by other countries, including Australia.

To become law, the bill must pass both chambers of Congress and be signed by President Donald Trump.

This article is based on reporting by Reuters.
Original article: US lawmakers introduce bill to create $2.5 billion critical-minerals stockpile, published on January 15, 2026 6:03 PM GMT+1.
© Reuters 2026.