US accelerates stockpiling to counter China’s metals dominance
The Pentagon has launched a $1 billion global buying spree to stockpile critical minerals in a move designed to reduce America’s dependence on Chinese-controlled supply chains for metals vital to its defence industry.
Public filings from the Defense Logistics Agency (DLA) reveal an accelerated push under the Trump administration to secure essential materials such as cobalt, antimony, tantalum, scandium and rare earths – all used in advanced technologies from fighter jets to missile systems.
The move comes as Beijing tightens export controls on strategic metals and Washington seeks to insulate its industries from potential disruption.
New phase of strategic competition
Officials and analysts say the Pentagon’s buying campaign marks one of the most aggressive efforts in decades to build up America’s mineral reserves. One former defence official said the $1 billion initiative represented a major escalation in stockpiling efforts. “They’re doing it in a deliberate and expansive way,” they said.
Beijing’s recent decision to impose sweeping new restrictions on rare earth exports prompted President Donald Trump to cancel a planned meeting with Chinese President Xi Jinping later this month. Trump said the United States would respond with 100 per cent tariffs on Chinese imports and new export controls on “virtually every product they make”.
China has long dominated the global market for rare earths and related minerals, creating vulnerabilities for Western economies. Stephanie Barna, a defence industry lawyer in Washington, said China’s grip on critical minerals posed a “direct, palpable and adverse effect on US ability to field the kind of high-tech capabilities needed for any strategic conflict”.
Expanding the national stockpile
According to recent filings, the Pentagon is seeking to purchase up to $500 million of cobalt, $245 million of antimony, $100 million of tantalum and $45 million of scandium from suppliers including Rio Tinto and APL Engineered Materials.
The DLA already stores dozens of metals and alloys in depots across the country, valued at $1.3 billion in 2023, but the new initiative will significantly expand both the range and scale of its holdings.
The stockpile can only be accessed in wartime or under presidential authorisation for national defence. Analysts say the scale of the latest requests has stunned markets, with some traders warning that US purchasing could distort global prices and strain non-Chinese suppliers. Cristina Belda of Argus Media said the Pentagon’s planned tonnages “exceed the US’s annual production and import levels”.
Volatile markets and supply fears
Global metal markets have already reacted to China’s restrictions, with the price of germanium soaring this year and antimony trioxide nearly doubling over the past 12 months. Car manufacturers and electronics firms have reported difficulty sourcing key materials as export controls tighten.
Under Trump’s One Big Beautiful Bill Act, $7.5 billion has been allocated to strengthen US mineral security – including $2 billion for national stockpiles, $5 billion for investment in supply chains, and $500 million for a Pentagon-backed credit programme to spur production. Several defence offices involved in the programme are reportedly “flush with cash” as spending ramps up through 2027.
Global supply chain pressures
Industry observers warn that the US’s sudden demand could create pressure on non-Chinese producers in countries such as Canada, Australia and Peru, where many of the metals are mined. Solomon Cefai of Fastmarkets said the DLA’s proposed acquisitions were so large that “non-China supply would be pressured by the volumes the DLA is looking at”.
As Washington and Beijing trade tariff threats and export bans, the Pentagon’s stockpiling drive underscores a broader shift: the militarisation of global resource competition. For the Trump administration, ensuring America’s access to critical minerals has become a cornerstone of national security – one that could reshape both global markets and the balance of technological power in the years ahead.
