For fewer imports from China: USA build raw material reserve - U.S. and Europe Race to Build Critical Raw Material Stockpiles Amid China Risks
The United States has announced plans to create a strategic stockpile of critical raw materials, aiming to cut reliance on Chinese imports that currently dominate the supply of rare earths and key metals. Funding for the project will total nearly $12 billion, combining public loans and private investment.
Meanwhile, the European Commission has proposed its own scheme to build reserves and set up a European Critical Raw Materials Board. The plan follows growing concerns over supply chain risks, especially as Beijing tightens export controls on essential minerals.
The U.S. stockpile will focus on materials like rare earth elements, cobalt, and lithium, which are vital for manufacturing smartphones, electric vehicles, and military hardware, including fighter jets. American automakers and tech firms are expected to benefit most from the initiative.
Funding will come from a $10 billion loan provided by the U.S. Export-Import Bank, alongside roughly $1.7 billion in private capital. The total investment of nearly $12 billion (around €10 billion) reflects the scale of the challenge. U.S. officials have repeatedly warned about strategic weaknesses caused by dependence on foreign suppliers, particularly China.
Across the Atlantic, the European Commission's proposal seeks to address similar risks. The plan includes joint procurement and storage of critical raw materials, managed by a new European Critical Raw Materials Board. However, no EU member states have yet confirmed their participation in the scheme.
The urgency of these measures has grown since Beijing imposed stricter export restrictions on rare earths and certain metals. These controls threaten to disrupt global supply chains, pushing Western economies to secure their own reserves. The U.S. remains more exposed than Europe, with a heavier reliance on Chinese imports for essential materials.
The U.S. stockpile will move forward with nearly $12 billion in funding, aiming to shield industries from supply shocks. In Europe, the Commission's proposal awaits member state approval, with no confirmations so far. Both initiatives highlight the growing focus on securing access to materials critical for technology, defence, and green energy sectors.
