Another strategic reserve is born? Report: U.S. Congress bipartisanly pushes $2.5 billion critical minerals strategic reserve plan

Lawmakers from both parties in the United States are set to introduce a new bill aimed at establishing a $2.5 billion "Strategic Resilience Reserve" for storing critical minerals. This initiative is intended to reduce U.S. dependence on external supply chains and provide stable raw material support for domestic technology and manufacturing industries.

According to the latest media reports, the proposal, called the SECURE Minerals Act, is scheduled to be jointly introduced on Thursday local time by Senators Jeanne Shaheen and Todd Young, along with Representatives John Moolenaar and Rob Wittman.

The bill will establish a critical minerals trading hub with an operational model between the Strategic Petroleum Reserve and the Federal Reserve: Physically, it will create storage facilities similar to the Strategic Petroleum Reserve; in terms of governance, it will set up a regulatory board modeled after the Federal Reserve to oversee the storage and release of key materials.

This move echoes recent efforts by Trump to expand mineral resource acquisition globally, including initiatives in Ukraine, Venezuela, and Greenland. Congress hopes to boost U.S. economic resilience and create a security mechanism similar to that in the energy sector through physical inventory and corresponding governance structures.

Reserve Mechanism Draws on Oil Reserve and Federal Reserve Models

Reports indicate the Strategic Resilience Reserve will be overseen by a seven-member committee appointed by the President and confirmed by the Senate, a structure similar to the Federal Reserve. The reserve will also build storage facilities for key materials, referencing the Strategic Petroleum Reserve's practice of storing millions of barrels of oil in underground salt caverns.

In a statement, Young said: "Establishing this reserve is a necessary and proactive measure to safeguard our nation and economic security."

Shaheen commented: "Global dominance over critical mineral supply chains confers significant leverage and makes the U.S. susceptible to economic coercion. This bipartisan legislation is a historic investment aimed at enhancing American economic resilience and supporting high-paying jobs in key sectors like aerospace, automotive, and technology."

Initial Investment of $2.5 Billion May Be Expanded

The bill's $2.5 billion is only an initial investment for the mineral reserve. If passed, Congress may allocate additional funding, mirroring the pattern of the CHIPS and Science Act signed by President Biden in 2022.

The CHIPS and Science Act authorized around $280 billion for semiconductors and scientific research, with Congress ultimately appropriating about $52 billion for semiconductor subsidies and loans. Trump has threatened to cut some subsidies; in Intel's case, the government converted part of an $11 billion subsidy into a 10% equity stake.

The Strategic Resilience Reserve's long-term strategy goes beyond simply storing minerals. The mechanism aims to establish a domestic critical minerals market, boost U.S. production capacity, and ensure stable long-term supply for American companies.

Global competition for rare earths and other raw materials is intensifying and has sparked conflicts in Africa while fueling Trump’s interest in Greenland. By building strategic reserves and nurturing domestic markets, the U.S. hopes to gain greater autonomy and bargaining power in this global minerals race.

Risk Disclaimer and Exclusion ClauseThe market involves risks, and investment should be made with caution. This article does not constitute personal investment advice, nor does it take into account the individual investment goals, financial situation, or needs of specific users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investments made based on this information are at one’s own risk.