(March 21): China plans to add to its strategic reserves of key industrial metals this year, an effort to boost the resilience of critical minerals supply at time when energy-transition demand is increasing and geopolitical tensions are running high.

Cobalt, copper, nickel and lithium are among the metals the government plans to purchase, according to people familiar with the discussion. They asked not to be named as the conversations are not public. The National Food and Strategic Reserves Administration, which manages the country’s official commodities stockpiles, has made price inquiries and sought to bid for some of these metals, the people said.

The National Development & Reform Commission (NDRC) — China’s top planning body, whose purview includes stockpiles — had signalled the plan in its report for the country’s annual parliament earlier this month, writing that the country would “move faster to fulfil the yearly task of stockpiling strategic goods.”

The NDRC didn’t respond to a faxed request for comment.

China’s state stockpiler, previously known as the State Reserve Bureau, manages everything from inventories of crude oil to pork and copper, and the scale of its purchases mean it can have material impact on market prices. The agency has already been increasing metal stocks inclding cobalt in recent years, and has also replaced old copper inventories with newer ones in rotation.

Beijing’s move is primarily about its ability to meet demand in crunch times, though the stockpiles can also be used to balance supplies and stabilise prices. Although the Chinese government occasionally announces some stockpiling plans, details such as the timing and quantity are usually considered confidential and are not made public.

The NDRC also said in its annual report that it would steadily build out storage facilities for grain, cotton, sugar, meat, and fertilisers, plus national oil reserve bases and general storage warehouses. It also aims to improve the management of reserves, and operational efficiency.

China has been diversifying its commodity suppliers for some time, seeking to minimise risk — but it is now also coming up against global trade dislocation triggered by US President Donald Trump’s tariffs and the resulting market volatility. Prices of some metals have also been pushed higher.

On Thursday, copper on the London Metal Exchange pushed through US$10,000 (RM44,225) a ton to the highest level since October, while prices on New York’s Comex neared a record high. Trump last month ordered the US Commerce Department to investigate imports of copper, potentially in anticipation of imposing duties. Since then, prices have spiked and traders have scrambled to send metal to America, in turn reducing supply in the rest of the world.

Cobalt, a battery material that suffered sharp price declines from rising global output in recent years, has also soared this month — after an export moratorium introduced by the Democratic Republic of Congo, the world’s largest producer.

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