In a rare display of bipartisan cooperation, Senators Jeanne Shaheen of New Hampshire and Todd Young of Indiana unveiled sweeping legislation Thursday that would create a new federal agency armed with $2.5 billion to stockpile critical minerals and break China's stranglehold on resources essential to everything from electric vehicles to advanced weaponry.

The SECURE Minerals Act represents Washington's most ambitious attempt yet to address a vulnerability that the trade war with Beijing exposed in stark terms: America's near-total dependence on Chinese-processed lithium, cobalt, nickel, and rare earth elements that power the modern economy.

A Federal Reserve for Minerals

The legislation proposes creating the Strategic Resilience Reserve, an independent body governed by a seven-member board modeled after the Federal Reserve's structure. Board members would be nominated by the president and confirmed by the Senate, insulating the agency from short-term political pressures while maintaining democratic accountability.

"This is a historic investment to make the U.S. economy more resilient against China's dominance," Senator Shaheen said in announcing the bill. "Beijing has left us vulnerable to economic coercion, and we cannot allow that to continue."

The reserve would function as a hybrid between the Strategic Petroleum Reserve and a central bank for minerals, with authority to purchase, store, and sell critical resources to stabilize prices and ensure supply continuity for both military and commercial applications.

China's Weaponization of Mineral Markets

The urgency behind the legislation stems from China's demonstrated willingness to leverage its mineral dominance during trade disputes. When the Trump administration imposed widespread tariffs last spring, Beijing retaliated not just with matching duties but with severe restrictions on critical mineral exports that ultimately forced Washington to negotiate a truce.

China currently processes more than 90 percent of the world's rare earth elements and dominates production of lithium and cobalt—materials without which modern batteries, wind turbines, and precision-guided munitions cannot be manufactured. The 68-page bill explicitly states that China has moved to "weaponize its influence over prices and volumes in the contest for access to critical minerals."

"Creating the new reserve is a much-needed, aggressive step to protect our national and economic security."

— Senator Todd Young (R-IN)

How the Stockpile Would Work

Under the proposed framework, the agency would prioritize recycled materials but could also purchase minerals extracted from domestic and allied mines. Allied nations would be permitted to join the reserve by contributing at least $100 million, creating a multilateral buffer against Chinese market manipulation.

Crucially, the reserve would operate on a self-sustaining model. Minerals could be sold for private-industry or defense purposes, with profits reinvested to expand the stockpile—theoretically allowing the reserve to grow in perpetuity after the initial $2.5 billion appropriation.

Key Provisions of the SECURE Minerals Act

  • Initial capitalization: $2.5 billion with authority for additional congressional appropriations
  • Governance: Seven-member board with staggered terms, modeled on Federal Reserve structure
  • Allied participation: Foreign nations may join with minimum $100 million contribution
  • Priority materials: Lithium, cobalt, nickel, rare earth elements, and other minerals deemed critical by defense and commerce agencies
  • Sustainability mechanism: Profits from mineral sales reinvested to maintain stockpile

Pentagon Already Moving Aggressively

The legislative push comes as the Pentagon has already committed nearly $5 billion over the past year to secure critical mineral access, including taking equity stakes in mining companies—an unprecedented step for the Defense Department. The SECURE Minerals Act would complement these efforts by creating a civilian reserve that serves the broader economy rather than military needs alone.

Industry analysts note that the $2.5 billion initial appropriation would represent only a down payment. Building a reserve capable of weathering sustained supply disruptions would likely require tens of billions over time, though the self-sustaining profit mechanism could reduce the need for ongoing appropriations.

Uncertain Path Forward

Whether the legislation can attract sufficient support to pass remains unclear. While the bill's bipartisan sponsorship gives it credibility, the proposal to create an entirely new federal agency may face resistance from fiscal conservatives. Additionally, any legislation touching trade policy must navigate the administration's own aggressive mineral-security initiatives, which have relied heavily on executive action rather than congressional mandates.

For investors in lithium miners like Albemarle and Livent, rare earth producers such as MP Materials and USA Rare Earth, and the broader clean energy supply chain, the legislation signals that Washington is prepared to provide sustained support for domestic mineral production—regardless of which approach ultimately prevails.

The SECURE Minerals Act has been referred to the Senate Banking Committee, where it will compete for attention with other financial legislation in what promises to be a contentious 2026 session.