US Seeks to Break China's Grip on Rare Earths as Trump Makes Last-Ditch Bid for Independence
The Trump administration has kicked off an ambitious drive to sever the US's dependence on Chinese rare-earth metals, sparking a scramble to assemble trading alliances around these critical materials.
As the world's largest consumer of rare earth elements, the US faces a daunting task: breaking China's stranglehold on production and refining. For years, Beijing has controlled 70% of global mining operations and over 90% of processing capacity, giving it a significant head start in eroding American dominance.
"We're finally becoming independent again," declared Scott Bessent, the US Treasury Secretary, after visiting South Carolina's eVAC, which produced its first rare-earth magnet in nearly a quarter century. The milestone marks a long-overdue step towards ending China's chokehold on the US supply chain.
To achieve this goal, Trump has employed a range of tactics, including tariffs and strategic investments. China responded by restricting exports to the US, prompting Trump to forge alliances with Australia, Malaysia, Cambodia, and Japan.
However, China's vast reserves and state-backed enterprises give it a formidable advantage in the global market. Rare earth elements are essential for semiconductors, renewable energy systems, military hardware, and other high-tech applications.
Industry experts warn that breaking free from Chinese dominance won't happen overnight. "It's not that there's a shortage per se; it's that China can limit how much is exported," says Adam Webb, head of Energy Raw Materials at Benchmark Mineral Intelligence.
The US has identified several promising locations for new rare earth deposits, including Greenland and Brazil, with potential mines in California, Wyoming, Missouri, and North Carolina.
In a bid to speed up production, Trump's administration is considering direct investments in critical mineral companies and even utilizing a sovereign wealth fund. However, past efforts have been hampered by China's ability to undercut prices, rendering domestic production economically unfeasible.
"We're competing against state capital because China is picking these strategically as areas that they want to invest in," said US Secretary of the Interior Doug Burgum. "Why wouldn't the wealthiest country in the world have the biggest sovereign wealth fund?"
As the battle for rare earths intensifies, industry analysts caution that swift action is required to avoid falling behind China's rapidly expanding capabilities.
The Trump administration has kicked off an ambitious drive to sever the US's dependence on Chinese rare-earth metals, sparking a scramble to assemble trading alliances around these critical materials.
As the world's largest consumer of rare earth elements, the US faces a daunting task: breaking China's stranglehold on production and refining. For years, Beijing has controlled 70% of global mining operations and over 90% of processing capacity, giving it a significant head start in eroding American dominance.
"We're finally becoming independent again," declared Scott Bessent, the US Treasury Secretary, after visiting South Carolina's eVAC, which produced its first rare-earth magnet in nearly a quarter century. The milestone marks a long-overdue step towards ending China's chokehold on the US supply chain.
To achieve this goal, Trump has employed a range of tactics, including tariffs and strategic investments. China responded by restricting exports to the US, prompting Trump to forge alliances with Australia, Malaysia, Cambodia, and Japan.
However, China's vast reserves and state-backed enterprises give it a formidable advantage in the global market. Rare earth elements are essential for semiconductors, renewable energy systems, military hardware, and other high-tech applications.
Industry experts warn that breaking free from Chinese dominance won't happen overnight. "It's not that there's a shortage per se; it's that China can limit how much is exported," says Adam Webb, head of Energy Raw Materials at Benchmark Mineral Intelligence.
The US has identified several promising locations for new rare earth deposits, including Greenland and Brazil, with potential mines in California, Wyoming, Missouri, and North Carolina.
In a bid to speed up production, Trump's administration is considering direct investments in critical mineral companies and even utilizing a sovereign wealth fund. However, past efforts have been hampered by China's ability to undercut prices, rendering domestic production economically unfeasible.
"We're competing against state capital because China is picking these strategically as areas that they want to invest in," said US Secretary of the Interior Doug Burgum. "Why wouldn't the wealthiest country in the world have the biggest sovereign wealth fund?"
As the battle for rare earths intensifies, industry analysts caution that swift action is required to avoid falling behind China's rapidly expanding capabilities.
, can't just rely on their own resources alone, needs alliances and investments to take down China's grip on this stuff 
. But, it's not gonna be easy, China got the money and tech behind 'em, it's like trying to take on a giant in a one-on-one fight 
. And, gotta wonder, what's the real motive here? Is it just about independence or is there something more at play? 
I mean, come on, 70% of global mining ops controlled by one country? That's like, straight out of a Bond villain movie 
. We need to wake up and realize that China isn't just dominating the rare earths game, they're holding us hostage. And now Trump is trying to break free, but we all know how that's gonna play out... it'll be a long shot if you ask me 
. I mean, have they considered just buying their own rare earths? Like, why not? We're not exactly swimming in dollars over here 
. We need some real strategic thinking here, not just throwing money at the problem 
they've been holding us hostage for years. But let's be real, breaking free from their stranglehold won't be easy. We need to invest big time in our own mining operations and infrastructure, and fast 
. I mean, those US Treasury officials are on the right track with tariffs and strategic investments, but we can't just rely on that alone 
. Can't wait to see what the future holds for our rare earth industry! 
I mean, it's about time someone tried to break China's grip on rare earths... like they haven't been doing this for years already 
. The US should've started this initiative eons ago, but hey, better late than never 
.
. I mean, have you seen those countries' economies? They're basically just tiny versions of China's 
. Whoever controls these minerals gets to control the tech world, and China is like the reigning champion of state-backed enterprises 
.
. Not gonna be easy tho 
