A bipartisan group of US lawmakers introduced legislation on Thursday to establish a $2.5 billion Strategic Resilience Reserve aimed at securing critical minerals, including lithium, nickel, and rare earths.
The bill seeks to stabilize domestic supply, counter perceived market manipulation by China, and encourage US and allied production.
The 68-page proposal outlines the creation of a seven-member board, modeled after the Federal Reserve, appointed by the president and confirmed by the Senate.
The board would oversee the purchase and stockpiling of minerals deemed critical by federal agencies, prioritizing recycled materials while also including mine-extracted resources. Revenue from sales to private industry or defense agencies would be reinvested to sustain the reserve.
Lawmakers said the reserve is intended to insulate the US from foreign supply disruptions and establish a Western pricing mechanism independent of China, which currently dominates global production of many critical minerals.
President Donald Trump, speaking ahead of the bill’s introduction, highlighted that US reliance on foreign minerals presents a national security risk.
The bill also allows allied nations to contribute at least $100 million to the reserve, encouraging international collaboration in line with recent G7 discussions on mineral price floors and similar initiatives in Australia.
Senator Jeanne Shaheen (D-NH), Senator Todd Young (R-IN), and Representative Rob Wittman (R-VA) are leading the effort. The legislation requires approval by both the House and Senate, as well as the president’s signature, to become law.