U.S. President Donald Trump has announced plans to launch a US$12 billion national critical minerals stockpile, a move aimed at sharply reducing America’s reliance on China for materials that are essential to modern industry, defense systems, and emerging technologies.
According to details reported, the proposed initiative would see the United States build and manage a strategic reserve of key minerals such as lithium, rare earth elements, cobalt, nickel, and graphite, inputs that are vital for electric vehicles, batteries, semiconductors, renewable energy systems, and advanced military hardware.
The stockpile is intended to function as both a supply shock buffer and a strategic lever in an increasingly competitive global minerals market. China currently dominates the processing and, in some cases, the extraction of many critical minerals, giving Beijing significant influence over global supply chains. U.S. policymakers across party lines have warned that this concentration poses economic and national security risks.
Trump’s proposal frames the stockpile as a direct response to that vulnerability. By securing long-term access to critical minerals, the U.S. would seek to insulate key industries from export restrictions, geopolitical tensions, or price manipulation. The initiative would also complement broader efforts to encourage domestic mining, processing, and recycling, as well as partnerships with allied countries rich in mineral resources.
Under the plan, federal agencies would purchase and store minerals deemed strategically essential, similar to how the U.S. maintains petroleum reserves through the Strategic Petroleum Reserve. Supporters argue that a minerals stockpile could stabilize markets during shortages and provide leverage during trade disputes.
The announcement comes amid intensifying global competition for critical minerals, driven by the energy transition and rapid growth in electric vehicle adoption. Demand for lithium and rare earths is projected to rise sharply over the next decade, while supply chains remain highly concentrated geographically.
China currently controls a dominant share of rare earth processing and plays a central role in refining lithium and other battery materials. Previous disruptions, including export curbs and trade tensions, have heightened U.S. concerns about overdependence on a single supplier.
Critics of large-scale stockpiling caution that such programs can be costly, difficult to manage, and vulnerable to market distortions if not carefully designed. Others argue that stockpiles should be paired with faster permitting, environmental safeguards, and incentives for private investment in mining and processing.
If implemented, the $12 billion critical minerals stockpile would mark one of the most significant U.S. interventions in raw materials markets in decades, underscoring how access to minerals has become a central issue in economic security, industrial policy, and great-power competition.
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