US Treasury Secretary Scott Bessent recently returned from South Carolina with a small piece of metal, proudly declaring that it was the first rare-earth magnet produced in the US in over 25 years. This achievement marks a significant milestone for the Trump administration's efforts to reduce America's dependence on China for these critical minerals.
The US has long been reliant on Chinese production of rare earths, with about 80% of its imports coming from the Asian nation. The Trump administration has taken steps to reverse this trend, including imposing tariffs and signing deals with countries such as Australia, Malaysia, Cambodia, and Japan to secure alternative sources of these minerals.
However, China's dominance in rare earth production is a significant challenge for the US. Beijing controls approximately 70% of global mining capacity, while over 90% of global processing takes place within its borders. This gives China a considerable head start in eroding America's dependence on Chinese rare-earth supplies.
The critical minerals used in semiconductors, batteries, and armaments are not abundant in the earth's crust, making extraction and refining complex processes. While there are deposits in countries such as Greenland, Brazil, and the US, the industry is not yet ready to meet the scale of demand from China.
The Pentagon has taken steps to secure a stable supply chain by becoming one of the largest shareholders in MP Materials, the operator of a California mine. Plans to open a new "mine-to-magnet" plant are underway, which will produce magnets necessary for critical military systems such as F-35 fighter jets and drones.
Despite these efforts, it is unlikely that America can quickly become self-reliant in rare-earth production. The industry requires significant investment, time, and infrastructure development to overcome the existing dependence on China.
Secretary of the Interior Doug Burgum has floated the idea of using a sovereign wealth fund to speed up production, suggesting that the US should invest heavily in critical mineral companies to secure a stable supply chain.
As the scramble to assemble trading alliances around rare earths accelerates, it remains to be seen whether America can successfully loosen China's hold on these critical minerals. The industry is expected to experience significant growth in the coming years, with many experts warning that those who invest early will dominate this market for generations to come.
The US has long been reliant on Chinese production of rare earths, with about 80% of its imports coming from the Asian nation. The Trump administration has taken steps to reverse this trend, including imposing tariffs and signing deals with countries such as Australia, Malaysia, Cambodia, and Japan to secure alternative sources of these minerals.
However, China's dominance in rare earth production is a significant challenge for the US. Beijing controls approximately 70% of global mining capacity, while over 90% of global processing takes place within its borders. This gives China a considerable head start in eroding America's dependence on Chinese rare-earth supplies.
The critical minerals used in semiconductors, batteries, and armaments are not abundant in the earth's crust, making extraction and refining complex processes. While there are deposits in countries such as Greenland, Brazil, and the US, the industry is not yet ready to meet the scale of demand from China.
The Pentagon has taken steps to secure a stable supply chain by becoming one of the largest shareholders in MP Materials, the operator of a California mine. Plans to open a new "mine-to-magnet" plant are underway, which will produce magnets necessary for critical military systems such as F-35 fighter jets and drones.
Despite these efforts, it is unlikely that America can quickly become self-reliant in rare-earth production. The industry requires significant investment, time, and infrastructure development to overcome the existing dependence on China.
Secretary of the Interior Doug Burgum has floated the idea of using a sovereign wealth fund to speed up production, suggesting that the US should invest heavily in critical mineral companies to secure a stable supply chain.
As the scramble to assemble trading alliances around rare earths accelerates, it remains to be seen whether America can successfully loosen China's hold on these critical minerals. The industry is expected to experience significant growth in the coming years, with many experts warning that those who invest early will dominate this market for generations to come.
just thinkin', 25 years without makin' its own rare earths... that's a big deal 
we should be proud of our gov't takin' steps to reduce reliance on china 
it's not gonna happen overnight tho, but at least we're tryin' 
I'm so stoked to see the US finally making progress on reducing its dependence on China for rare earths! It's a huge step forward, and I love how Secretary Bessent is proudly showing off that first domestic magnet 
. Of course, it's not going to be easy - we're talking complex processes and significant investment here 
... but think about all the benefits! We'll have more control over our own supply chain, less reliance on foreign governments, and an even stronger economy 
. Plus, who knows, maybe this will be the start of a new wave of innovation and growth 
. I'm super optimistic about America's future and its ability to adapt and thrive 
Rare earths are super crucial for all sorts of modern tech and it's about time we got our act together. I'm all for the US trying to cut its dependence on China but let's be real, 25 years is a pretty long time to have been relying on one country for everything... 
It's gonna take some serious investment and infrastructure development to get ahead of the curve. And honestly, using a sovereign wealth fund might just be the push we need to speed things up. 
I think its gonna take a lot longer than just 1-2 yrs to break china's stranglehold on these minerals we already see other countries getting in on the action like canada and india trying to establish their own rare earth processing capabilities... still gotta figure out how to make this whole process more efficient 
It's been a long time coming, but it's about time we started thinking outside the box (or in this case, the mine) 
. The fact that they've already produced a magnet in over 25 years is a huge win 
, and I'm all for investing in critical mineral companies to secure a stable supply chain 
, and it's going to take some time (and $$$) to catch up 
. The industry is complex, and we need more than just a sovereign wealth fund to make this happen 
Who knows, maybe one day we'll be the rare earth superpower 
.
70% of global mining capacity? that's wild! but at the same time, I don't blame china for wanting to control the market, i mean who doesn't want a stranglehold on the global supply chain? 
it's like, what's the US even going to do without its own rare earth production in place? are they just gonna keep relying on other countries to get their tech and defense needs met? that sounds super insecure 
The article says it was the first one produced in "over" 25 years, which could mean it's actually been 20 or even 30 years since then 
but seriously it's good they're trying to reduce dependence on china, those tariffs and deals with other countries are a good start. not sure if investin in sovereign wealth funds is the way to go tho 