The United States is taking a bold step to secure its future in the high-stakes race for critical minerals, as the Pentagon announced plans to spend up to $1 billion on building a strategic stockpile. This unprecedented move, reported by the Financial Times on October 14, 2025, is designed to reduce America’s reliance on China for the essential metals that power everything from advanced weaponry to green energy technologies.
The effort is being led by the Defense Logistics Agency (DLA), marking the largest U.S. strategic mineral acquisition since the Cold War. It’s a centerpiece of President Trump’s sweeping “One Big Beautiful Bill Act” (OBBA), which allocates $7.5 billion to bolster domestic and allied resources. The plan breaks down into $2 billion to expand the U.S. stockpile by 2027, $5 billion for investments in mineral and processing supply chains, and a $500 million Pentagon credit program aimed at jumpstarting private mining and refining projects.
Why the urgency? China currently dominates the global supply chain for many of these critical minerals, refining between 80% and 90% of rare earth elements and holding major influence over metals such as cobalt and nickel. According to the Financial Times, recent Chinese export restrictions on rare earths have only heightened Washington’s concerns, with the U.S. viewing these limits as a strategic maneuver to weaponize mineral exports. In response, the Pentagon’s approach is shifting from traditional market reliance to a more state-driven strategy, ensuring resource security through direct intervention.
President Trump has responded to these developments with tough rhetoric and policy. Confirming plans to impose 100% tariffs on all Chinese imports starting November 1, Trump labeled China’s export limits a "hostile act." He added, "Right now it is. Let’s see what happens," leaving the timeline flexible but the intent clear. On his Truth Social account, Trump accused Beijing of manipulating supply chains and warned of "100% tariffs… over and above any tariff they are currently paying." These measures are a direct reaction to China’s decision to limit rare earth exports and represent a significant escalation in the economic standoff between the two powers.
The Pentagon’s mineral buying spree is focused on four key materials vital for both defense and clean energy sectors: cobalt (up to $500 million), antimony (about $245 million, partially sourced from U.S. Antimony Corp.), tantalum (around $100 million), and scandium (a combined $45 million, reportedly from Rio Tinto and APL Engineered Materials). These purchases will expand the existing $1.3 billion national stockpile, which already includes metals essential for weapons production, energy systems, and high-tech manufacturing. A defense official told the Financial Times that several Pentagon offices are now "flush with cash" for mineral procurement, signaling a sea change in how the U.S. approaches its resource needs.
But the strategy goes beyond simply buying minerals. The government is also exploring offshore resources in the Pacific Ocean, which are rich in nickel, cobalt, copper, and manganese. This move reflects a broader push to secure supply lines and diversify sources, reducing vulnerability to geopolitical shocks.
Perhaps the most dramatic policy reversal came with President Trump’s approval of the Ambler Road Project in Alaska. This 211-mile corridor, connecting the Dalton Highway to vast mineral deposits in the state’s northwest, had been blocked during the Biden administration. Its green light is now seen as a crucial step toward U.S. resource independence, providing access to copper, zinc, and rare earth elements necessary for clean energy and defense manufacturing.
According to the U.S. Geological Survey (USGS), the United States currently imports over 80% of its critical minerals and remains heavily dependent on foreign refining. This reliance exposes the nation to significant supply risks, particularly as global tensions with China mount. The International Energy Agency (IEA) estimates that China controls 90% of rare earth refining and significant shares of nickel and cobalt processing. Such dominance underscores the urgency behind Washington’s new stockpiling efforts.
This approach isn’t unique to the U.S. The European Union has introduced its Critical Raw Materials Act, mandating reserves of essential minerals. India, too, launched a National Mineral Security Strategy in 2025, while Japan maintains months-long reserves of rare earths. The global race for mineral security is on, and the Pentagon’s stockpiling is both a defensive measure and a loud signal to allies and rivals alike: the next big competition among world powers is for critical minerals, not oil.
The market has taken notice. Mining and rare earth stocks, including companies like U.S. Antimony and MP Materials, have seen increased interest as Washington ramps up procurement. The DLA’s plan to purchase 3,000 tonnes of antimony—representing about one-eighth of annual U.S. demand—could stabilize the market for this often volatile metal. Analysts anticipate similar impacts for other targeted minerals as government demand becomes more predictable and robust.
Meanwhile, private sector players are moving to adapt. On October 15, Canamera Energy Metals Corp, a mineral exploration company listed on the Toronto Stock Exchange (TSE:EMET), announced it had engaged Rangefront Mining Services to support the expansion of its U.S. projects. This strategic move is a direct response to China’s new rare earth export restrictions and aims to strengthen North American rare earth supply chains while reducing dependency on Chinese materials. Canamera targets underexplored regions with district-scale potential, leveraging advanced geochemical and geological data to identify promising opportunities.
Yet, not every company is riding high. According to Spark, TipRanks’ AI Analyst, Canamera currently faces a challenging financial situation, with no revenue and negative cash flow, raising questions about the sustainability of its business model. Despite a market capitalization of C$21.64 million and an average trading volume of 53,272 shares, the company’s future hinges on its ability to capitalize on the shifting landscape for critical minerals.
All of these moves—public and private, domestic and international—reflect a world awakening to the strategic importance of mineral resources. As the Pentagon’s $1 billion stockpile plan unfolds, it marks a decisive shift in U.S. policy: no longer content to trust global markets, Washington is taking direct action to safeguard the materials that will shape the next generation of technology, energy, and defense.
With the stakes this high, the race for critical minerals is only just beginning, and the outcome will define not just economic fortunes, but the very security and technological future of the United States and its allies.
