Read the full white paper (PDF):
A Modern SPR for the Lithium Age
Stabilizing Price Volatility from China-Dominated Oversupply
A U.S. Strategic Lithium Reserve—modeled on the Strategic Petroleum Reserve—can stabilize extreme lithium price volatility, counter China’s dominance of chemical conversion, and create the predictable incentive price needed for Western mining and refining projects to reach Final Investment Decision. It’s a practical, bipartisan industrial policy tool that works immediately.
Overview
In October 2025, Congressional hearings highlighted a structural vulnerability in U.S. energy security:
China controls 70–75% of global lithium chemical conversion and uses that leverage to suppress prices, create volatility, and block Western projects from reaching Final Investment Decision.
The result:
- Lithium prices that swing 10–15×,
- Western converters that remain unbuilt or uneconomic,
- And a U.S. supply chain for EVs, AI/data-center infrastructure, and modern defense systems that is dangerously exposed.
RK Equity’s new white paper proposes a practical, bipartisan solution:
The USA Strategic Lithium Reserve — a modern SPR for the lithium age.
The SLR is a rules-based reserve of lithium carbonate that buys during oversupply and releases during spikes or export threats, stabilizing the market without price floors, subsidies, or technology picking.
Why the SLR Matters
- Immediate impact: Can begin purchasing within months at today’s depressed prices.
- Low cost: A 170,000-tonne reserve costs just $3–4.25B; a 300,000-tonne reserve costs $6–7.5B—tiny relative to IRA, LPO, CHIPS, or a single hyperscale data center.
- Americas advantage: Chile + Argentina already produce the world’s largest non-China carbonate volumes. Redirecting a portion to the U.S. dramatically boosts security of supply.
- Market-driven: Stabilizes the incentive price ($20–25k/t) needed for private capital to finance mines and conversion projects across the Western Hemisphere.
- Technology neutral: Supports brine, hard rock, sedimentary, and unconventional brines without choosing winners.
Implementation at Warp Speed
The white paper lays out a three-phase roadmap:
- Phase 1 (0–12 months): Authorize the reserve, begin immediate purchases, initiate U.S.–Chile royalty discussions.
- Phase 2 (12–48 months): Align hemispheric projects with new conversion capacity; support advanced strategic projects.
- Phase 3 (4–7 years): Fully operational ~300,000-tonne reserve; stabilize the market across cycles; build a Western-aligned lithium industry.
Read the full white paper (PDF):
(graphics, modeling, roadmap, policy framework)
For media inquiries or private briefings:
Howard Klein
Founder, RK Equity