US Introduces $2.5billion Stockpile Bill for Critical Minerals
US Critical Mineral Stockpile Bill for $2.5billion Introduced
GFN – WASHINGTON: A bipartisan group of U.S. lawmakers has introduced legislation to establish a $2.5 billion Strategic Resilience Reserve for critical minerals, aiming to stabilize prices, support domestic mining and refining, and reduce U.S. dependence on China-dominated supply chains.
According to Reuters, the 68-page bill would create a federally governed stockpile of minerals including lithium, nickel, and rare earths, overseen by a seven-person board modeled on the Federal Reserve’s governance structure. Lawmakers argue that Chinese overcapacity, export controls, and pricing power have distorted global markets and undermined U.S. producers in sectors ranging from electric vehicles to defense manufacturing.
The reserve would be authorized to purchase minerals designated as critical by U.S. agencies and store them in warehouses across the country. While the bill prioritizes recycled material, minerals sourced from mines would also qualify. Allied nations could participate by contributing at least $100 million, and any profits from mineral sales would be recycled back into the program to maintain the stockpile indefinitely.
Silver Math: $100 and $144 are our "Targets"
Housekeeping: In august of this year upon hearing the news of Silver being added to the Critical mineral list, Goldfix did an analysis of where Silver and Copper could go on that news.
The legislation directly accuses Beijing of using its dominant position strategically, stating that China has moved to weaponize its influence over prices and volumes in critical mineral markets. China has rejected those claims, saying it supports the stability of global supply chains.
“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,” said Senator Jeanne Shaheen, the ranking Democrat on the Senate Foreign Relations Committee.
The bill grants the reserve’s governing board wide discretion over procurement, including the ability to pay above prevailing market prices in order to support domestic producers in markets dominated by Chinese supply. Senate aides said this flexibility could allow the reserve to help establish alternative, non-Chinese pricing benchmarks for certain niche but essential minerals.
“It’s certainly possible this reserve could create a Western price for certain critical minerals,” a Senate aide said.
The legislation is co-sponsored by Republican Senator Todd Young of Indiana and introduced in the House by Republican Representative Rob Wittman of Virginia. To become law, it must pass both chambers of Congress and be signed by President Donald Trump. Similar initiatives are under discussion among Group of Seven finance ministers, while Australia is pursuing its own critical minerals reserve.
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