China is set to expand its strategic reserves of essential industrial metals in 2025, aiming to enhance the nation’s resilience amid rising energy-transition demands and increasing geopolitical tensions. Key metals such as cobalt, copper, nickel, and lithium are included in the government’s acquisition plans, according to sources familiar with the discussions, who requested anonymity due to the confidential nature of the talks.
The National Food and Strategic Reserves Administration (NFSRA), responsible for managing China’s official stockpiles, has already initiated price inquiries and is preparing to bid for some of these critical metals. This move aligns with signals from China’s National Development & Reform Commission (NDRC), which highlighted the country’s intention to accelerate its stockpiling efforts in its recent annual report to the National People’s Congress. The NDRC emphasized the importance of fulfilling the yearly task of stockpiling strategic goods more swiftly.
While the NDRC did not respond to a request for comment, the NFSRA—formerly known as the State Reserve Bureau—has historically managed a wide array of stockpiles, from crude oil to pork and copper. The scale of the agency’s purchases often exerts a notable influence on global market prices. Over the past few years, the NFSRA has been steadily increasing its metal inventories, including cobalt, and has been rotating old copper stockpiles with newer supplies.
China’s primary objective in stockpiling these metals is to ensure the country can meet critical demand during emergencies. However, these reserves also help to stabilize supply chains and balance market prices. While the Chinese government occasionally announces stockpiling strategies, specific details regarding timing and quantity remain closely guarded.
In addition to its strategic metals plan, the NDRC’s report outlined broader initiatives to expand storage facilities for agricultural products such as grain, cotton, sugar, and meat, as well as for fertilizers and national oil reserves. The commission also aims to enhance the management and operational efficiency of these reserves.
China has been diversifying its sources of key commodities for several years, reducing dependency on any single supplier to mitigate risk. However, it is now navigating the challenges of global trade disruptions exacerbated by the US’s trade policies under former President Donald Trump. The resulting market volatility, particularly in metals, has led to price surges.
Copper prices, for example, reached over $10,000 per ton on the London Metal Exchange this week, the highest level since October 2024. Prices on New York’s Comex also neared record highs. The US Commerce Department recently launched an investigation into copper imports, potentially leading to new tariffs, which triggered a spike in copper prices as traders rushed to supply the US market, tightening global supply.
In addition, cobalt—crucial for battery production—has seen a sharp price increase this month, reversing a trend of price declines caused by oversupply in recent years. This price surge is partly driven by an export ban imposed by the Democratic Republic of Congo, the world’s largest producer of cobalt, further intensifying market pressures.
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