The United States is ramping up its efforts to secure vital resources for national defense, launching a $1 billion initiative to stockpile critical minerals—an unprecedented move that signals a new era in the global race for strategic materials. The Pentagon, through its Defense Logistics Agency (DLA), has formally begun acquiring vast quantities of metals and minerals essential for everything from advanced weaponry to electric vehicles, semiconductors, and high-tech electronics. The aim: to insulate U.S. defense supply chains from the tightening grip of China, which has long dominated the market for these strategic resources.
The urgency of the Pentagon’s mission became clear after Beijing announced fresh export restrictions on rare earths and related technologies on October 9, 2025, as reported by The Financial Times. These measures sent shockwaves through global markets and triggered a swift political response in Washington. Just a day later, President Donald Trump unveiled sweeping 100% tariffs on Chinese imports, declaring on Truth Social, “There is no way that China should be allowed to hold the world captive.” The tariffs, part of a broader policy linking national security with industrial resilience, reflect a hardline approach to what Trump has called China’s “hostage economics.”
At the heart of this effort is the One Big Beautiful Bill Act, a legislative package that allocates $7.5 billion to critical mineral initiatives, including $2 billion specifically earmarked for expanding the defense stockpile by 2027. As of 2023, the DLA’s reserves of metals, alloys, and minerals were valued at $1.3 billion. But with supply chain jitters mounting, the agency is now looking to dramatically increase those reserves.
According to CryptoSlate, the Pentagon’s procurement spree includes planned purchases of $500 million worth of cobalt, $245 million of antimony from U.S. Antimony Corp. (AMEX:UAMY), $100 million of tantalum from a domestic supplier, and about $45 million of scandium from Rio Tinto (NYSE:RIO) and APL Engineered Materials. The agency is also exploring acquisitions of tungsten, bismuth, indium, and other rare metals—sometimes in quantities that exceed current U.S. annual production. This signals preparation for potential long-term strategic shortages, a concern that’s grown as China flexes its market power.
“They’re definitely looking for more, and they’re doing it in a deliberate and expansive way,” a former U.S. defense official told The Financial Times. This ramp-up is described as the sharpest acceleration in America’s stockpiling efforts in decades, echoing Cold War-era programs that once focused on oil but now prioritize minerals like lithium, cobalt, nickel, and rare earths.
The stakes are high. These minerals are not just building blocks for consumer gadgets—they’re the backbone of modern military technology. Fighter jets, missile guidance systems, smart bombs, and high-frequency radars all depend on a steady supply of materials that are increasingly at risk of geopolitical disruption. As Stephanie Barna, a partner at Covington & Burling and former acting assistant secretary of defense, explained, “China’s ability to turn off the supply of these critical minerals would have a direct, palpable, and adverse effect on the U.S. ability to field the kind of high-tech capabilities that we’re going to need.”
But stockpiling is no simple task. A study by Columbia University’s Center on Global Energy Policy warns that the U.S. faces significant design and implementation challenges, especially when it comes to storing minerals like cobalt for future use. “Building such a stockpile comes with significant design and implementation challenges. A successful effort will require clarity of purpose, strategic alignment between stakeholders, and substantial investment,” cautioned Dr. Tom Moerenhout.
While the Pentagon’s move may seem like commodity speculation, officials insist it’s a defensive posture—a calculated response to an increasingly unreliable global supply chain. “The race is on,” as Gold Telegraph commented on X, highlighting the symbolic significance of the $1 billion effort. The U.S. isn’t alone in this scramble; Brussels and other European capitals are also rushing to secure their own mineral reserves, motivated by both war risk and the ongoing energy transition.
The international dimension took another turn on Sunday, October 12, 2025, when Beijing softened its rhetoric. Chinese officials defended the export controls as “legitimate” and in line with international law, emphasizing that the measures were designed to “safeguard global peace and stability”—not to instigate economic warfare. Importantly, they clarified that these controls are not absolute bans; export applications that meet established criteria would still be approved, and dialogue channels with major trading partners remain open. This apparent flexibility has begun to calm investor nerves and sparked hope for resumed dialogue.
Analysts now suggest that a less aggressive stance from Beijing could trigger a relief rally across commodities, gold, and even risk-on assets like Bitcoin, as fears of a prolonged supply chain crisis begin to subside. As The Kobeissi Letter put it: “If President Trump responds and de-escalates on Sunday, markets are set for a big jump on Monday.”
The ripple effects of this mineral arms race are already being felt in financial markets. The Sprott Critical Materials ETF (NASDAQ:SETM) has soared 76.71% year-to-date and was up 8.30% in premarket trading on October 13, 2025, reaching $28.84. Gold, long considered the ultimate safe haven, is seeing its strategic value joined by a new class of “security minerals.” Investors are adjusting their portfolios accordingly, hedging not just with gold bars but with metals crucial to the next generation of technology and defense.
Bitcoin, too, is being re-evaluated. Its appeal as “digital gold” rests on its scarcity and resistance to government control, making it immune to physical supply chain disruptions. However, its price remains sensitive to broader market sentiment. If trade tensions escalate, investors may flock to the U.S. dollar, gold, and Bitcoin to shelter from volatility. Conversely, an easing of tensions could see crypto and risk assets rebound sharply.
Ultimately, the Pentagon’s billion-dollar bet on critical minerals represents a profound shift in America’s approach to resource security. It’s a recognition that the definition of a “store of value” is evolving—gold isn’t losing relevance, but it’s gaining competition from the very minerals that power the modern world. As the U.S. and its allies adapt to new geopolitical realities, the scramble for strategic materials is set to shape not only defense policy but also the global economy for years to come.
For now, the message from Washington is clear: America is determined not to be left vulnerable in the next great resource contest, no matter how high the stakes or how quickly the rules of the game change.