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A bipartisan group of US lawmakers has introduced a bill to create a strategic reserve for critical minerals valued at $2.5 billion to counter China's dominance in global supply chains. The proposed 'strategic resiliency reserve' aims to stabilize prices for minerals essential for electric vehicles, advanced technologies, and defense systems, sectors where China exerts significant influence.

Currently, China accounts for about 60% of global rare earth mining and dominates nearly all processing, controlling refined production of lithium, graphite, and cobalt. Lawmakers contend that Beijing has manipulated this position to influence prices by creating oversupply in markets like lithium while imposing export restrictions on rare earths, driving prices higher.

The bill proposes a seven-member committee to manage the reserve, authorized to purchase, store, and sell critical minerals, prioritizing recycled materials while allowing newly mined minerals. Supporters assert the reserve would protect US industry from supply shortages and bolster national security.