Bipartisan Legislation Seeks $2.5 Billion Strategic Minerals Reserve to Counter China

Summary

Last week, Congressman Rob Wittman (VA-01) and Select Committee on China Chairman John Moolenaar (MI-02) introduced a new legislative proposal: The Securing Essential and Critical U.S. Resources and Elements Act (“The SECURE Minerals Act” or “The Bill”). The bipartisan SECURE Minerals Act is designed to strengthen U.S. economic and national security by stabilizing critical mineral markets and reducing reliance on China-dominated supply chains. The bill would establish a Strategic Resilience Reserve (“SRR”) with flexible financial tools to counter intentional price manipulation, aggregate demand, and support domestic and allied production of critical minerals essential to advanced manufacturing, defense, energy, and healthcare technologies. In the Senate, Foreign Relations ranking member Jeanne Shaheen (D-N.H.) and Sen. Todd Young (R-Ind.) introduced companion legislation.

Background

Lawmakers on both sides are alarmed by China’s dominance of critical mineral supply chains, which are believed to poses a threat to U.S. competitiveness and national security. China’s unfair subsidization of their critical mineral industry has exposed America’s vulnerability and it has put vital defense, energy, and healthcare supply chains at risk. The SECURE Minerals Act aims to counter China’s unfair trade practices.

The SECURE Minerals Act was first introduced in December 2024 (H.R. 10378) but stalled in committee as it failed to secure enough support. The 2026 reintroduction builds on that effort, this time with significant bipartisan and bicameral support.

The proposal for the $2.5 billion Strategic Resilience Reserve is modeled after the Strategic Petroleum Reserve created in 1975 in response to the Middle East oil embargo. Today, The United States faces a similar threat from China, and lawmakers hope that SRR will ensure that The United States is better positioned to withstand and respond to China’s supply-chain manipulation. The SRR would create a seven-member board, appointed by the president and confirmed by the Senate, who would manage purchasing decisions and oversee storage facilities distributed across the country. The reserve would focus primarily on recycled minerals, while also purchasing materials from U.S. and allied producers. G7 countries (Canada, France, Germany, Italy, Japan, The United Kingdom, and the United States) and other allies could participate by contributing at least $100 million. Proceeds from mineral sales to private companies or defense contractors would be reinvested through additional purchases, which would allow the reserve to function as a self-financing, long-term mechanism.

Key Takeaways

• Market Stabilization: The bill supports critical mineral markets and aggregates demand to promote price stability, market certainty, and crisis prevention and mitigation.
• Strategic Resilience Reserve: Establishes a SRR tasked with increasing America’s share of global critical mineral and material production.
• Supply Chain Security: Re-shores manufacturing supply chains that are vital to our economic and national security.
• Countering China: Counters China’s unfair trade practices.

What This Means for Your Business

For U.S. Based Companies Operating Across the Critical Minerals Value Chain

• Greater price stability and market predictability from federal market-stabilization tools.
• Improved investment conditions for domestic projects, as federal market stabilization tools help address nonmarket distortions that have discouraged long-term capital deployment in U.S. critical mineral supply chains.
• Increased demand and certainty through federal purchasing and reserve related activity.
• Enhanced competitiveness against subsidized foreign producers, particularly in segments where China has used state support to undercut market prices and suppress U.S. and allied production capacity.

For Prime Contractors and End Users

• Reduced exposure to supply disruptions, export controls, and geopolitical price shocks affecting critical mineral inputs.
• Greater cost predictability for long-term production planning.
• Increasing expectations to demonstrate secure and resilient sourcing in federal contracting and risk assessments.
• Strategic advantages for firms that diversify away from China-controlled supply chains and engage with U.S. or allied suppliers.

What Companies Should Do Now

• Review Supply Chain Strategy: Consider whether your current supply arrangements align with U.S. supply-chain security objectives and explore opportunities for diversification.
• Engage with Trade Associations. Participate in industry forums to stay informed about developments and coordinate advocacy efforts if needed.
• Explore Domestic Capacity Investments and Partnerships: Consider investment and partnerships with domestic miners, processors, or allied suppliers that may benefit from reserve demand and federal backing.

Bottom Line

The SECURE Minerals Act reflects a bipartisan consensus that market forces alone cannot counter foreign state manipulation in critical mineral supply chains. Secure sourcing, domestic capacity, and allied supply chains will increasingly define competitiveness. Companies that adapt early are more likely to benefit from policy-driven stability, government demand, and long-term strategic alignment with U.S. national priorities.

We understand that navigating the complexities of evolving trade policy can be challenging. Our team is here to assist you in understanding these developments and their implications for your business.

Contact Clark Hill

If you have questions regarding the content of this alert, please contact one of the authors from our Clark Hill Public Strategies Team:

• Kelsey Christensen (kchristensen@clarkhill.com; 202.230.9889)
• Ronald D. Sullivan (rsullivan@clarkhill.com; 202.809.2235)
• Kristina Aleksanyan (kaleksanyan@clarkhill.com; 202.640.6641)
• Mariana Berumen, (mberumen@clarkhill.com; 202.552.2362)

Click here to find these and other Clark Hill Public Strategies Attorneys and Advisors.

Subscribe here to receive future Clark Hill Public Strategies alerts directly to your inbox.

This publication is intended for general informational purposes only and does not constitute legal advice or a solicitation to provide legal services. The information in this publication is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking professional legal counsel. The views and opinions expressed herein represent those of the individual author(s) only and are not necessarily the views of Clark Hill PLC or Clark Hill Solicitors LLP. Although we attempt to ensure that postings on our website are complete, accurate, and up to date, we assume no responsibility for their completeness, accuracy, or timeliness.