Summary
A group of U.S. lawmakers plans to propose a law to create a $2.5 billion reserve for critical minerals, aiming to reduce U.S. dependence on foreign supplies. This reserve seeks to stabilize the domestic market, similar to the Strategic Petroleum Reserve, to ensure a steady supply of minerals needed for technologies like semiconductors and electric car batteries. The initiative comes amid concerns that China's control over most of the world's critical minerals makes the U.S. vulnerable to disruptions.
Key Facts
- A bipartisan group in Congress will introduce a new bill called the SECURE Minerals Act to create a reserve for critical minerals.
- The proposed "Strategic Resilience Reserve" (SRR) would have a $2.5 billion budget.
- President Trump is actively pursuing global sources of critical minerals to boost U.S. supplies.
- China dominates the global supply chain for many necessary minerals, raising security concerns for the U.S.
- The reserve aims to mimic the Strategic Petroleum Reserve by storing key materials for future use.
- The legislation involves setting up a board to oversee the reserve, similar to the Federal Reserve.
- This effort aligns with past initiatives like the CHIPS and Science Act, which supported semiconductor research.
- The reserve is intended as a first step, with potential for increased funding if Congress passes the law.
