Critical Mineral Stockpiling: Global Approaches and India’s Strategy

Critical Mineral Stockpiling: Global Approaches and India’s Strategy

The increased geopolitisation of supply chains has undermined the resilience and reliability of global trade. China dominates nearly 70% of global critical minerals markets and has leveraged this position through export restrictions affecting several countries such as India, the United State (US), Japan. India is particularly vulnerable due to its heavy reliance on China for rare earth element imports at nearly 75%. A previous blog examined how critical mineral stockpiles which are created to release stocks during shortages, could help India mitigate these vulnerabilities while cushioning domestic industries against global supply disruptions.

This is especially relevant as India seeks to expand renewable energy, electric mobility, advanced manufacturing, and defence production, all of which depend on reliable access to critical minerals. While India has taken measures to diversify imports, develop domestic sources, establish a Rare Earth Corridor, and emphasise urban mining, these endeavours will take time to translate into resilient supply chains. Designing an effective stockpiling strategy therefore will require an in-depth cost–benefit–risk analyses, making it essential for India to draw lessons from global practice.

Stockpiling Under the National Critical Mineral Mission

In India, the National Critical Mineral Mission (NCMM) outlines the framework for stockpiling. The programme will initially cover at least five critical minerals and has been allocated US$57.5 million for the period FY2024–25 to FY2030–31. The framework provides for a joint institutional arrangement between central government public sector undertakings, and private actors to identify minerals and establish mechanisms for the timely release of stockpiles. Detailed guidelines for the stockpiling programme will be prepared in consultation with the Ministry of Finance.

Critical mineral stockpiles require constant monitoring of stocks as minerals may be vulnerable to chemical risks—degradation, contamination, and hazardous leakage—and may be targets of physical and cyber-attacks, including on Supervisory Control and Data Acquisition (SCADA) systems.

India is also strengthening international cooperation in this area. In August 2025, India and Japan signed a memorandum of cooperation on critical minerals that provides for the exchange of information on their respective stockpiling efforts. In March 2026, India and Canada issued a joint statement, where the latter committed to support India’s stockpiling initiative.

Risks and Challenges for India’s Critical Mineral Stockpiling

Stockpiling is accompanied by a range of risks and challenges depending on the form, quantity, and nature of the mineral stockpiled (See Table 1 of the first blog in the series). Critical mineral stockpiles require constant monitoring of stocks as minerals may be vulnerable to chemical risks—degradation, contamination, and hazardous leakage—and may be targets of physical and cyber-attacks, including on Supervisory Control and Data Acquisition (SCADA) systems.

The form in which the mineral is stored also matters, as stockpiles must be usable by downstream industries with minimal additional processing. Another challenge is economic viability. The costs of stockpiling minerals vary depending on financing[1], warehousing, logistics, discounts[2], material loss, and geostrategic importance. These challenges differ significantly across public (centralised), private (decentralised), or market-based sectors (see Table 1).

Table 1: Advantages and Disadvantages of Different Types of Stockpiling

Source: Author’s analysis of IEA, Designing an effective strategic stockpiling system for critical minerals, 2026 and Critical Stocks, Critical Stakes: The Effectiveness of Critical Mineral Stockpiles in Mitigating Supply Risks to Energy, Security and Information

International Critical Mineral Stockpiles

The US, Japan, South Korea, and China maintain mineral stockpiles, while the European Union (EU) is currently in the process of establishing one.

Japan

Japan’s critical mineral stockpiling project was formalised in 1983 as a cooperative system between the government and the private sector. Managed by the independent agency Japan Organisation for Metals and Energy Security (JOGMEC), which was established in 2004, Japan currently maintains reserves[3] with a target of 60 days of standard domestic consumption. The market impact of the release of stocks is assessed by a committee consisting of independent experts both before and after release. Since 2020, stockpiling targets apply only to national reserves rather than private inventories, and targets may be adjusted depending on the geoeconomic significance of specific minerals. However, private enterprises are encouraged to maintain stockpiles with a voluntary target equivalent to 18 days of supply.

While stockpiles grew in the US during the Cold War, their value declined from US$50.4 billion to US$1 billion between 1952 and 2023. Then, between 2019 and 2023, the value of stockpile shortfalls increased by 167% and stood at US$18.5 billion.

In 2024, JOGMEC’s inventory was worth US$389.7 million. Notably, as part of the 2025 United States-Japan Framework for securing the supply of critical minerals, both parties agreed to ‘consider a mutually complementary stockpiling arrangement.’

United States

The United States first established the National Defence Stockpile (NDS) in 1939 through the Strategic and Critical Materials Stockpiling Act, for national security purposes. Managed by the Department of Defence’s defence stockpile agency, the NDS has experienced several fluctuations. While stockpiles grew during the Cold War, their value declined from US$50.4 billion to US$1 billion between 1952 and 2023. Then, between 2019 and 2023, the value of stockpile shortfalls increased by 167% and stood at US$18.5 billion. Further, among minerals identified as being in short supply, 59%  had no domestic suppliers and 32% had only one. In recognition of these challenges, the scope of the NDS was expanded in 2022 when the US departments of Energy, State and Defence signed a memorandum of agreement to stockpile critical minerals for clean energy technologies.

Building on this, in February 2026, the US Strategic Critical Minerals Reserve—also referred to as Project Vault—was proposed. This will be established as a public–private partnership backed by the U.S. Export-Import Bank (EXIM) with US$10 billion, marking the largest commitment in the bank’s history. EXIM will provide long-term loans, complemented by private capital, to procure and store critical minerals. Covering all 60 minerals listed on the US Geological Survey’s 2025 critical minerals list, this project will focus on strengthening industrial and economic security by serving civilian industries. Manufacturers will have to pay a commitment fee to secure access to the reserves, which will offset the cost of stockpiling.

The US has also pursued international partnerships to strengthen its stockpiling policies. In 2025, under the US–Australia Critical Mineral Framework, both states agreed to cooperate by leveraging the US’s stockpiling infrastructure and Australia’s Critical Mineral Strategic Reserve. This was followed by a 2026 agreement between the EU, US and Japan to ‘facilitate the exchange of information on stockpiling.’ The same year Mexico and the US agreed to build supply chain resilience through coordinated stockpiling.

To further strengthen supply chain resilience, it is working towards setting up a rapid distribution system to ensure that companies in South Korea requiring specific minerals will be supplied within eight days.

South Korea

South Korea began stockpiling minerals in 1967 and has since been managed by the Public Procurement Service and Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR). The 2025 Special Act on National Resources Security established the National Resource Security Council to oversee matters related to stockpiling, as well as created statutory obligations for maintaining resource stockpiles. The procurement of material is decided through consultation with the Ministry of Trade, Industry and Energy, the Ministry of Finance and Economy, the Small and Medium Enterprises Cooperatives Federation, and other relevant ministries.

South Korea aims to build up to 100 days of supply (currently at 56.8 days) for rare metals by 2031 and 60 days (currently at 50 days) for non-ferrous metals by 2027 to not only tackle emergencies but also to supply additional demand in business-as-usual scenarios. To further strengthen supply chain resilience, it is working towards setting up a rapid distribution system to ensure that companies requiring specific minerals will be supplied within eight days.

European Union

The EU is developing critical mineral stockpiles under the 2024 Critical Raw Materials Act (CRMA), which emphasises coordination among member states and strategic partnerships with third countries. The act establishes the EU Critical Raw Materials Board, comprising representatives from each member state, to oversee the stockpiling programme of the EU, among other things. Stockpiling will be achieved through coordination among national strategic stocks to avoid overlaps and build synergies, while also considering strategic partnerships with third countries. Furthermore, under the 2024 RESourceEU Action Plan, the EU will set up the European Critical Raw Materials Centre, which will act as a key hub for critical minerals in the EU, including for stockpiling. Importantly, the stockpiles may include minerals required for the green and digital transition. An EU parliament study suggested that a 60-day reserve for demand levels in 2021 could require up to 8.6 million tonnes,  worth  US$29.1 billion.

China

In China, stockpiling is undertaken by the National Food and Strategic Reserves Administration that functions under the National Development and Reform Commission. Given China’s dominance in extraction, refining, and production, and the fact that most mining companies are state-owned, China is able to maintain public stockpiles across different stages of processing. The size of the stockpiles is estimated to be between 40,000 tonnes (10% of global consumption) and 100,000 tonnes.

Table 2: Comparison of Stockpiling Strategies of Japan, South Korea, China, the US, the UK, and the EU

Unlike stockpiling policies during the Cold War, contemporary reserves are designed not only to address emergencies but also to mitigate business-as-usual market volatility.

 Conclusion

Unlike stockpiling policies during the Cold War, contemporary reserves are designed not only to address emergencies but also to mitigate business-as-usual market volatility. Global strategies reflect a shift towards public–private partnerships, with increasing focus on ensuring supplies for economic activities in addition to defence needs and coordinated mechanisms across countries through bilateral and multilateral agreements. Initiatives such as the Framework for Overcoming Risks in Global Economies (FORGE), Pax Silica, and the Quad critical minerals initiative may also encompass stockpiling within their larger mandate, though it has not been explicitly mentioned.

Alongside India’s existing cooperation in exploration and mining through Khanij Bidesh India Limited (KABIL), stockpiling could also emerge as another avenue for collaboration with partner countries to strengthen critical mineral supply chains.

As India develops its stockpiling policies under the NCMM, several questions merit closer examination. Policymakers, scholars, and industry stakeholders will need to consider which institutional model is most appropriate for the Indian context. They will also need to assess how policy instruments and market mechanisms can be designed to ensure that the stockpiling programme remains cost-efficient and operationally effective. The experience of other countries can offer insights into storage requirements, financing mechanisms, regulatory oversight, and associated logistical arrangements.

A key question is whether stockpiling would be more effective when implemented as a national strategy or as a coordinated multilateral effort. Alongside India’s existing cooperation in exploration and mining through Khanij Bidesh India Limited (KABIL), stockpiling could also emerge as another avenue for collaboration with partner countries to strengthen critical mineral supply chains.