US Vice President Kamala Harris unveiled the plan as part of a broader US$100Bn industrial policy vision.  

In December 2023, the US House Select Committee on Strategic Competition between the US and the Chinese Communist Party recommended creating a reserve of critical minerals “…to insulate American producers from price volatility” and protect against China’s “…weaponization of its dominance in critical mineral supply chains.”   

As reported by Bloomberg, the committee also recommended spending US$1Bn to expand an existing National Defense Stockpile, an inventory of critical minerals managed by the Defense Department that is used to provide emergency access to domestic manufacturers for defence purposes. 

Should VP Harris win the US Presidential election in November, this proposed move could spell changes for US defence stockpiling and spending and, should stockpiling efforts be significant, have an impact on certain critical material supply chains by removing units from the market.  

A National Defense Strategy (NDS) program was established under the Strategic and Critical Materials Stock Piling Act of 1939 to maintain and manage strategic and critical materials for use during times of national emergency.  

Since its inception, stockpiled materials have included ores, base metals, precious metals, minerals and agricultural products.  

However, following the end of the Cold War, the Department of Defense (DoD) determined that virtually the entire stockpile inventory was excess to DoD needs. Since 1993 Congress has authorized disposal of over 99% of the stock, earmarking the revenues for various defence programs, primarily military health and retirement benefits. 

Harris also called for new incentives and the use of emergency government powers under the Cold War-era Defense Production Act to increase domestic processing of critical minerals. 

A statement read that “…increased domestic production will be paired with innovative and sustainable steps to build stronger critical mineral supply chains alongside our allies and partners, including by incentivizing investments that expand US and allied production of these resources”.