US Likely To Launch $12-Billion Rare Minerals Stockpile To Lower China Reliance

Last Updated:February 02, 2026, 23:34 IST

The US plans a $12 billion critical minerals stockpile to reduce reliance on China, aiming to secure resources for automakers and tech companies.

The project is expected to bring about $1.7 billion in private capital and a $10 billion loan from the Export-Import Bank of the United States (EXIM). (AP File)

The US will likely launch a critical minerals stockpile with $12 billion as part of initial funding, a White House official said on Monday. This comes as Washington seeks to lower reliance on China for rare earths and other resources.

The project, first reported by Bloomberg, is expected to bring about $1.7 billion in private capital and a $10 billion loan from the Export-Import Bank of the United States (EXIM).

AFP quoted the White House officials saying that this would go towards securing and storing the key minerals for businesses like automakers and tech companies – forming a stockpile for the US private sector.

Also Read: China Losing Its Dominance Over Rare Earths Minerals? A US Discovery Offers New Hope

Rare-earth metals are crucial in the production of things ranging from smartphones to fighter jets and electric cars.

According to the Energy Agency, China dominates the supply chain of key minerals, refining between 47% and 87% of copper, lithium, cobalt, graphite and rare earths.

In January, China banned the export of items destined for Japan’s military that have civilian and military uses, including some critical minerals.

Also Read: G7, Allies Meet To Discuss Ways To Reduce Chinese Rare Earth Dependency

Following this, the finance ministers of the G7 countries and other major economies, including India met in Washington to discuss ways to reduce dependency on rare earths from China.

After the meeting, US Treasury Secretary Scott Bessent discussed “solutions to secure and diversify supply chains for critical minerals, especially rare earth elements".

Reuters quoted Japanese Finance Minister Satsuki Katayama saying that there was “broad agreement on the need to swiftly reduce reliance on China for rare earths".

She said she had short-, medium- and long-term policy approaches for G7 and like-minded countries to bolster non-Chinese rare earth supplies.

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