For fewer imports from China: USA build raw material reserve - U.S. Launches $12 Billion Stockpile to Break Free From Chinese Raw Material Control

The United States is taking major steps to cut its reliance on Chinese imports of critical raw materials. A new strategic stockpile, backed by nearly $12 billion in funding, will secure supplies of rare earths, cobalt, and lithium. These materials are vital for industries like tech, defence, and electric vehicle manufacturing.

Warnings about overdependence on foreign sources for essential materials emerged between 2017 and 2021. The U.S. government highlighted risks tied to China's dominance in rare earth production—elements crucial for smartphones, fighter jets, and electric cars. Last year, Beijing further tightened export controls on these materials, raising concerns in Washington.

The U.S. response includes a stockpile designed to shield automakers and tech firms from supply chain disruptions. Funding comes from a $10 billion loan by the U.S. Export-Import Bank, alongside roughly $1.7 billion in private investment. This move contrasts with Europe's slower progress in reducing dependence, despite efforts like the EU Critical Raw Materials Act.

While the EU still relies entirely on China for some materials, the U.S. has diversified more effectively in recent years. The European Commission has proposed its own reserves and set up a Critical Raw Materials Board, but implementation lags behind the American initiative.

The stockpile will help secure supplies for key U.S. industries while reducing vulnerability to export restrictions. With $12 billion allocated, the plan marks a significant shift in managing critical material dependencies. Meanwhile, Europe continues to face challenges in cutting its own reliance on Chinese imports.