China Plans to Expand Strategic Metal Reserves Amidst Supply Challenges

China plans to enhance its strategic reserves of metals like cobalt, copper, nickel, and lithium to bolster supply resilience against energy transition demands and geopolitical tensions, following government directives to accelerate stockpiling amid rising metal prices.

China is set to augment its strategic reserves of critical industrial metals such as cobalt, copper, nickel, and lithium. This measure aims to enhance the resilience of supply chains in response to the rising demands related to energy transition and prevailing geopolitical tensions. The National Food and Strategic Reserves Administration has initiated price inquiries and submissions for certain metals, encouraged by directives from the National Development & Reform Commission (NDRC) to hasten stockpiling activities, according to Bloomberg News.

In summary, China’s strategy to expand its strategic metal reserves underscores a proactive approach to addressing supply chain vulnerabilities in an increasingly complex global landscape. The government’s efforts include diversifying suppliers and enhancing storage facilities to counteract trade disruptions and fluctuating metal prices, especially amidst current trade challenges.

Original Source: www.tradingview.com