Rare Earth Strategic Stockpiles: Who Holds Reserves and Why It Matters
Rare earth strategic stockpiles are government reserves held to protect defense and industry from supply cuts. China's export controls since 2025 have pushed the United States, Australia and the European Union to buy or plan new reserves. Most governments keep their holdings confidential, so the table describes each programme rather than its size.
| Holder | Programme | What is known |
|---|---|---|
| United States | National Defense Stockpile, run by the Defense Logistics Agency | Holdings are not published in detail. In 2025 the Pentagon announced plans to buy up to $1 billion of critical materials, and the agency sought up to 30 tonnes of dysprosium oxide and 10 tonnes of terbium oxide. |
| Japan | JOGMEC stockpiling under the Ministry of Economy, Trade and Industry | Japan has stockpiled rare metals for decades and expanded its programme after the 2010 supply disruption. Volumes and locations are kept confidential. |
| China | State reserves and state-owned producers | China has bought rare earths for state reserves at times of low prices. It does not publish the size of its stockpiles. |
| Australia | Critical Minerals Strategic Reserve | A$1.2 billion allocated in the 2025-26 budget, focused first on rare earth magnet metals, antimony and gallium, with operations planned from the second half of 2026. |
| European Union | Joint purchasing and stockpiling under RESourceEU | The EU plan adopted in December 2025 includes pilot joint purchasing and stockpiling, with rare earth permanent magnets a priority. |
How Stockpiles Affect Rare Earth Markets
- Purchases add demand. For small markets such as dysprosium and terbium, even tens of tonnes of government buying is significant.
- Releases add supply. Governments can sell from reserves during shortages, but they rarely say when or how much.
- Secrecy adds uncertainty. Because stockpile sizes are not published, investors cannot easily estimate how much buffer exists.
- Stockpiles favour non-China producers. Western buying programmes generally prefer supply from outside China, which supports companies such as Lynas and MP Materials.
Strategic Stockpiles FAQ
Does the US have a rare earth stockpile?
Yes, the US National Defense Stockpile, managed by the Defense Logistics Agency, holds some rare earth materials for defense use. Its exact holdings are not public, and since 2025 the Pentagon has been buying more, including dysprosium and terbium oxide.
How do stockpiles affect rare earth prices?
Stockpile purchases add demand and can support rare earth prices, especially for small markets such as dysprosium and terbium. Releases from stockpiles do the opposite, but governments rarely announce them in advance, so their effect is hard to predict.
Which countries stockpile rare earths?
The United States, Japan and China all stockpile rare earths, and Australia and the European Union are building new reserves. Most governments keep the size of their rare earth stockpiles confidential.