Trump Pushes $2.5 Billion Minerals Stockpile to Counter China

A bipartisan group of U.S. lawmakers has proposed creating a $2.5 billion national stockpile of critical minerals, aiming to stabilize turbulent markets and counter China’s commanding control over global supply chains.

The legislation, unveiled on Thursday, would establish a permanent “Strategic Resilience Reserve” of minerals such as lithium, nickel, and rare earths, materials essential for producing electric vehicles, advanced weapons, and other key technologies. Supporters argue that China’s dominance in mining, processing, and pricing has warped global markets and stifled investment in American mining and refining projects.

The bill explicitly frames China’s market role as a form of geopolitical leverage, an accusation Beijing has consistently denied, maintaining it supports stable international supply chains.

To become law, the proposal would need approval from both the House and Senate, as well as the signature of President Donald Trump, who has frequently warned that reliance on foreign minerals jeopardizes U.S. national security.

A Federal Reserve–Style Model for Minerals

The reserve would be managed by a seven-member board, appointed by the president and confirmed by the Senate, with a governance approach loosely modeled on the Federal Reserve. The board would purchase and store designated critical minerals, a logistically complex task, as some compounds, like certain forms of lithium, require careful handling to avoid hazards such as hydrogen release.

While recycled materials would be prioritized, newly mined minerals would also be eligible. Allied nations could join by contributing at least $100 million, expanding the stockpile’s reach beyond U.S. borders. Minerals could later be released for commercial or defense purposes, with any profits reinvested into new purchases to sustain the reserve indefinitely.

A Response to Market Volatility

Proponents point to recent market disruptions as proof of the need for intervention. Last year, a surge of low-cost Chinese lithium led Albemarle to pause U.S. expansion plans. Meanwhile, growing competition from Chinese suppliers prompted the Pentagon to take a major stake in MP Materials in 2023.

Advocates say a permanent reserve could act as a buyer of last resort, cushioning price drops and providing more predictable demand for domestic producers. Senate staff noted the board would have broad authority, including discretion to pay above-market prices if necessary to maintain U.S. or allied output.

“That flexibility is key,” one aide said, pointing out that many strategic minerals are thinly traded, leaving prices heavily influenced by Chinese production.

Pursuing an Independent Price Benchmark

Backers hope the reserve could eventually help establish non-Chinese price references for key minerals, an idea gaining support among U.S. allies. G7 finance ministers recently discussed price floors for critical minerals, and Australia is developing a similar national stockpile.

Democratic Senator Jeanne Shaheen, a lead sponsor, said targeted stockpiling would “insulate the U.S. from foreign threats” while boosting the economy cost-effectively. Republican Senator Todd Young co-sponsored the Senate bill, with a companion House version introduced by Representative Rob Wittman.

Whether the legislation can pass a divided Congress is uncertain. Yet its introduction reflects a hardening consensus in Washington: securing critical minerals is no longer just an economic issue, it is a strategic imperative.