China distorts global markets for critical minerals through subsidies, export controls, and price manipulation, threatening U.S. and allied industry. Drawing lessons from stockpiles in history, we propose establishing a U.S.-led multilateral critical minerals stockpile (MCS), implemented by regulated private operators. The goals are to stabilize the commercial market during times of geopolitical stress and facilitate the creation and sustainment of liquid spot markets for more of these minerals.
The proposed MCS will:
- Stockpile at least 12 months of peacetime demand for the critical minerals with industrial uses that are most vulnerable to supply chain disruptions from China.
- Purchase these minerals under normal market conditions and store them on federal land and/or in allied countries.
- Disperse minerals into the commercial market when China’s actions spike prices or disrupt supply.
The existence of such a mechanism would mitigate the coercive leverage China enjoys over the United States and its allies thanks to its control of mineral supply chains. The paper proposes a detailed schematic concept for broader discussion and possible implementation.
