In response to the economic threats posed by the Chinese Communist Party (CCP), lawmakers from both parties in the United States jointly proposed a bill on Thursday, January 15, to establish a $25 billion strategic resilience reserve. The purpose of this reserve is to support the domestic supply chain of critical minerals such as rare earths, stabilize market prices, and promote domestic mining and refining.
This bipartisan bill was introduced in the Senate by Senator Jeanne Shaheen, the chief Democratic senator on the Senate Foreign Relations Committee, and Republican Senator Todd Young. In the House of Representatives, it was proposed by Republican Representatives Rob Wittman and John Moolenaar.
Senator Shaheen stated in a press release that critical minerals have become the “key bottleneck of the global economy” and a significant leverage tool for the CCP, as seen in their actions over the past year. This bipartisan bill plays a crucial role in protecting the U.S. economy from external threats and creating high-paying job opportunities domestically.
The bill represents the latest effort by the United States to counter the CCP’s manipulation of prices for lithium, nickel, rare earths, and other critical minerals. This manipulation has hindered the development of American mining companies for years.
The 68-page bill noted that the CCP has taken actions to “weaponize its influence over price and supply quantity” in the competition to access critical minerals.
The bill will establish a Strategic Resilience Reserve overseen by a seven-member board of directors appointed by the President and confirmed by the Senate. Their responsibilities include supporting the critical minerals market by stabilizing prices, expanding domestic and allied production capacities, purchasing mineral resources deemed crucial by various U.S. institutions, promoting the recycling of critical minerals, establishing inventories, and enhancing supply chains.
The bill will prioritize supporting the recycling of critical minerals and minerals on which the U.S. relies on China, including rare earths. China currently controls 90% of global rare earth processing. U.S. allies can join the reserve by contributing at least $100 million.
The reserved minerals can be used for private sector or defense purposes. All profits will be reinvested into purchasing more minerals to maintain the sustainability of the reserve.
Senator Shaheen highlighted that China’s dominant position in the global critical minerals supply chain makes the U.S. vulnerable to economic threats. This bipartisan bill is a historic investment aimed at enhancing the resilience of the U.S. economy and supporting high-quality employment in key industries such as aerospace, automotive, and technology.
“Providing targeted investments and stockpiling critical raw materials will help protect the U.S. from foreign threats while providing a significant and cost-effective boost to the American economy,” she said.
Senator Young, a co-sponsor of the bill, mentioned that “for years, China has exploited its dominant position in critical minerals, manipulating global markets and supply chains. Our bill will counter China’s ongoing threatening behavior and ensure the U.S. has a secure and reliable mineral supply to support its defense system and high-tech industry. Establishing this reserve is a much-needed and proactive measure to safeguard national and economic security.”
According to Reuters, Senate aides have indicated that the reserve board will have flexibility in purchasing minerals. For example, if a purchase could support American mines, the board might agree to pay double the current market price for rare earths – a market currently dominated by China.
A Senate aide noted, “This reserve could potentially establish a ‘Western price’ for certain critical minerals.”
This bipartisan bill still requires approval from both the Senate and the House of Representatives before being signed into law by President Trump.
This week, finance ministers from the Group of Seven (G7) discussed the issue of mineral prices. President Trump stated on Wednesday that the U.S.’s excessive reliance on critical minerals from other countries poses a national security threat.