Congress Introduces Strategic Reserve to Combat Chinese Mineral Dominance

A bipartisan group of U.S. lawmakers has proposed a $2.5 billion critical minerals stockpile to stabilize market prices and promote domestic mining. The bill aims to counter China's control over vital minerals essential for technology and defense. It requires congressional approval and presidential assent to become law.

A bipartisan initiative led by U.S. lawmakers seeks to establish a $2.5 billion stockpile of critical minerals, aiming to stabilize market prices and bolster domestic mining activities. The legislation is a strategic response to China's perceived manipulation of mineral markets crucial for high-tech and military applications.

The proposed bill highlights China's dominance over lithium, nickel, and rare earth elements, which has complicated American mining operations. The creation of a Strategic Resilience Reserve, modeled after the Federal Reserve, would address this by stockpiling minerals across the U.S. and potentially collaborating with allied nations contributing at least $100 million.

Both economic and national security arguments underscore the necessity of the reserve, with revenue generated from sales being reinvested to maintain mineral stocks. The legislation awaits approval from both the House and the Senate, along with the President's signature, to become law.

(With inputs from agencies.)