Another strategic reserve born? Report: Bipartisan push in the U.S. Congress for a $2.5 billion critical minerals strategic reserve plan

U.S. bipartisan lawmakers will introduce a new bill, planning to establish a "Strategic Resilience Reserve" with a scale of $2.5 billion for the storage of critical minerals. This initiative aims to reduce the United States' dependence on external supply chains and provide stable raw material guarantees for domestic technology and manufacturing. According to the latest media reports, the proposal, named the SECURE Minerals Act, is scheduled to be jointly introduced on Thursday local time by Senators Jeanne Shaheen and Todd Young, as well as Representatives John Moolenaar and Rob Wittman. The bill will establish a critical mineral trading center, operating in a manner between the Strategic Petroleum Reserve and the Federal Reserve: On a physical level, it will create storage facilities similar to the Strategic Petroleum Reserve; on a governance level, it will set up a regulatory committee akin to the Federal Reserve, responsible for overseeing the storage and release of critical materials. This move echoes Trump's recent efforts to expand mineral resource acquisition globally, including initiatives in Ukraine, Venezuela, and Greenland. Congress hopes to enhance the resilience of the U.S. economy by establishing physical inventories and corresponding governance structures, creating a safeguard mechanism similar to that in the energy security sector. The reserve mechanism draws on the models of oil reserves and the Federal Reserve Reports indicate that the Strategic Resilience Reserve will be overseen by a seven-member committee appointed by the president and confirmed by the Senate, a governance structure similar to the Federal Reserve. At the same time, the reserve will establish storage facilities for critical materials, following the practice of the Strategic Petroleum Reserve, which stores millions of barrels of oil in underground salt caverns. Young stated in a statement, "Establishing this reserve is a necessary and proactive measure to protect our national and economic security." Shaheen pointed out, "The dominance of global critical mineral supply chains gives significant leverage, making the U.S. vulnerable to economic coercion. This bipartisan legislation is a historic investment aimed at enhancing the resilience of the U.S. economy and supporting high-paying jobs in key sectors such as aerospace, automotive, and technology." Initial investment of $2.5 billion may expand further The $2.5 billion in the bill is only the initial investment for the mineral reserve. If the bill passes, Congress may allocate additional funds. This model is similar to the CHIPS and Science Act signed by President Biden in 2022. The CHIPS and Science Act authorized approximately $280 billion for semiconductor and scientific research, with Congress ultimately appropriating about $52 billion for semiconductor subsidies and loans. Trump had threatened to cancel some subsidies, and in the case of Intel, the government converted part of a $11 billion subsidy into a 10% equity stake. The long-term strategy of the Strategic Resilience Reserve is not limited to storing minerals. This mechanism aims to establish a domestic critical mineral market, enhance U.S. production capacity, and ensure a stable long-term supply for American businesses The global competition for rare earths and other raw materials is unfolding worldwide, leading to conflicts in Africa and fueling Trump's interest in Greenland. By establishing strategic reserves and nurturing the domestic market, the United States aims to gain greater autonomy and bargaining power in this global mineral race. Risk Warning and Disclaimer The market carries risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk.