A $12 billion stockpile of critical minerals held by the U.S. could distort supply chains and pricing, analysts warn.
The U.S. government holds a $12 billion reserve of critical minerals, including rare earths and lithium, accumulated under former President Trump. The stockpile aims to secure domestic supply chains but risks creating market imbalances by flooding or restricting global trade flows.
Analysts note the reserve exceeds typical strategic stockpiles, with potential to influence commodity prices if released or withheld. Comparable programs, such as China’s rare earths dominance, have historically triggered volatility in related markets.
Market participants are monitoring policy signals, as shifts in distribution could impact sectors from electric vehicles to defense manufacturing.