Exploring Trump's Rush to Reduce US Reliance on Chinese Rare-Earth Metals

Not long ago, the US Treasury Secretary returned from a southern state brandishing a tiny sample of metal, declaring it was the first rare-earth magnet made in the US in decades.

He remarked that this was a sign the US is breaking “China’s chokehold on our industrial pipeline.” Thanks to a new rare-earth mineral manufacturing plant in South Carolina, he noted, “The nation is regaining its autonomy.”

Challenging Beijing's Control in Essential Minerals

Reducing China’s refining and production supremacy in these minerals, which are vital for advanced electronics, energy storage, and armaments, is a top priority for the current US administration. Using tariffs and other strategies, the US is counting on returning the industry home to American shores.

Such tariffs led China to restrict rare-earth shipments to the US and motivated US leaders to sign deals with Australia, Malaysia, Cambodia, and a key Asian economy.

While the US and China have now reached a temporary agreement on rare earths, China—with approximately the majority of global mining and over 90% of international refining—holds an advantage that may prove challenging to diminish.

“These materials are used in EV engines but also in defense technology that have obvious applications for the defense department,” notes a market analyst. “Anything that has a strong magnet in it requires rare earths.”

No Easy Fix for American Self-Sufficiency

There’s no easy fix for the US to reset its dependence on imports from China of minerals essential to national security, semiconductor production, and the shift from traditional energy to renewable sources. Data from federal reports, the US imported 80% of the rare earths it used in 2024.

For some rare-earth minerals such as a key element, essential for chip production, and samarium, essential to military applications, Chinese refinement dominance reaches 99%. These elements are found in magnets essential for electric engines and power systems in renewable energy, along with applications for cellphones, high-intensity lighting, and energy plants.

Extended Timelines and Global Deposits

Initiatives to cut the US’s reliance on Chinese production of rare-earth minerals could take years. Analysts point out that “Rare earths” is not entirely accurate because they’re not that uncommon in the earth’s crust, but many deposits, such as those in Ukraine, where a deal was signed recently, are only in the early stages of extraction.

“The issue isn't scarcity itself, it’s that Beijing can limit how much is exported,” an analyst said, adding that obtaining permits from China can be a complex and time-consuming endeavor.

Greenland, another focus of American interest, and Brazil, are additional nations with substantial rare-earth resources. Domestically, there are deposits in California, the Midwest, and the central US, with the biggest active site operating at Mountain Pass, the state, about 60 miles from a major city.

Government Initiatives and Funding

In July, the Pentagon took on the role of the major investor in an industry operator, with plans to open a new “integrated” plant, called a new facility, to produce magnets essential for F-35 fighter jets, drones, and submarines.

Across the continent, measured and indicated resources of rare earths were estimated to include millions of tons in the US and more than 14m tons in the northern neighbor—far less than the 44m tons believed to be in the Asian giant.

Mirroring government funding in the steel industry and US chipmakers, the federal agency said it was ready to make targeted funding in strategic resource firms.

“The US is up against government-backed investment because Beijing is selecting these strategically that they want to invest in,” a cabinet member stated during a speech in April.

He floated that the US could utilize a national investment pool to accelerate production. “How could the richest nation in the world have the biggest sovereign wealth fund?” he questioned.

Historical Obstacles and Prospects

US efforts to support domestic production have struggled in the past when China cut costs, rendering unsupported rare-earth development uneconomic against Asia's competitive pricing and long-term strategic outlook.

In the past, a market expert testified before a congressional panel that “nations that fund in battery capacity and supply chains now are poised to lead this sector for generations to come. It is not too late for the US but immediate steps are required.”

Since then, a scramble to assemble trading alliances around rare earths is accelerating.

“In about a year from now, we’ll have an abundance of essential resources that supply will exceed demand,” the President told the media. This followed in the wake of a request for payment in the form of natural resources from another country. In September, the government of Pakistan agreed to a deal with an American company, securing rights to minerals such as antimony and copper.

Prospects for Success

But, can the US make up its gap and loosen Beijing's grip on rare-earth supply chains? “America has implemented major measures already,” a specialist comments. The US, he continues, is unlikely to become “self-reliant in the short term because it requires years to start operations and build refining capacity.”