A bipartisan group of US lawmakers has introduced a bill to create a $2.5 billion stockpile of critical minerals, a move aimed at stabilizing market prices and encouraging domestic mining and refining.
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abcnews.go.combusinesstimes.com.sgThis legislation is seen as a response to what policymakers describe as Chinese manipulation of prices for essential materials, including lithium, nickel, and rare earths, which are vital for high-tech products and military applications.
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businesstimes.com.sgfinance-commerce.comThe proposed bill, known as the Strategic Resilience Reserve, would establish a seven-member board modeled after the governance structure of the Federal Reserve.
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businesstimes.com.sgfinance-commerce.comThis board would be responsible for overseeing the procurement, storage, and sale of critical minerals, ensuring that the US can maintain a stable supply chain independent of foreign influences.
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abcnews.go.comfinance-commerce.comSenator Jeanne Shaheen, a Democrat from New Hampshire, emphasized that the legislation represents "a historic investment" to bolster the US economy against China's dominance, which has left the nation vulnerable to economic coercion.
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abcnews.go.comCo-sponsor Senator Todd Young, a Republican from Indiana, described the initiative as "a much-needed, aggressive step to protect our national and economic security.".
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abcnews.go.combusinesstimes.com.sgThe bill aims to insulate the US from foreign threats by allowing allied countries to join the reserve if they contribute at least $100 million.
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businesstimes.com.sgThis collaborative approach is intended to enhance the resilience of supply chains and create a more stable market for critical minerals.
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businesstimes.com.sgfinance-commerce.comChina's control over the critical minerals market has been a significant concern for US lawmakers, particularly as the country has been accused of using its dominance to manipulate prices and restrict supply.
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businesstimes.com.sgfinance-commerce.comFor instance, a glut of lithium generated by China has led to American companies like Albemarle pausing expansion plans due to unfavorable market conditions.
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businesstimes.com.sgThe Pentagon has also taken steps to secure access to these materials, becoming the largest shareholder in MP Materials, a key rare earths company, amid rising competition from China.
businesstimes.com.sgThe board would have the flexibility to purchase minerals at prices that may exceed current market rates to support domestic production, potentially establishing a "Western price" for critical minerals that is less influenced by Chinese market dynamics.
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businesstimes.com.sgfinance-commerce.comIn addition to addressing immediate supply concerns, the bill reflects a broader strategic shift in how the US approaches resource security.The geopolitical landscape has prompted lawmakers to recognize that control over critical minerals is not just an economic issue but a matter of national security.
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discoveryalert.com.auThe legislation is part of a larger effort to ensure that the US can compete effectively in a global market increasingly dominated by China.
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abcnews.go.comdiscoveryalert.com.auTo become law, the bill must pass both the House of Representatives and the Senate, and be signed by President Donald Trump.
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businesstimes.com.sgfinance-commerce.comIf enacted, it could take 18 to 24 months for the reserve to become fully operational, as the board establishes procurement and storage protocols.
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discoveryalert.com.auThe introduction of this bill comes at a time when the Group of Seven (G7) finance ministers are also discussing strategies to stabilize mineral prices and enhance supply chain resilience.
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businesstimes.com.sgThe US government's commitment to creating a strategic reserve signals a significant shift in policy aimed at reducing reliance on foreign sources for critical minerals, which are essential for both civilian and military applications.
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abcnews.go.comfinance-commerce.comAs the US moves forward with this initiative, it will be crucial to monitor how it aligns with existing policies and the broader geopolitical landscape, particularly in relation to China and other key players in the critical minerals market.
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abcnews.go.comdiscoveryalert.com.auThe success of this bill could pave the way for a more secure and self-sufficient approach to critical mineral procurement in the future.
