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Recently, the US Treasury Secretary came back from a southern state brandishing a small piece of metal, proclaiming it was the first rare-earth magnet made in the US in 25 years.

He indicated that this was evidence the US is breaking “Beijing's grip on our supply chain.” Because of a recently opened rare-earth mineral processing center in South Carolina, the official continued, “The nation is regaining its autonomy.”

Challenging Beijing's Control in Critical Materials

Ending Beijing's processing and manufacturing dominance in these minerals, which are essential for advanced electronics, energy storage, and armaments, is a top priority for the federal government. Using trade measures and other approaches, the US is counting on returning the industry back to American shores.

Such measures prompted Beijing to limit rare-earth exports to the US and motivated US leaders to sign deals with an ally, Malaysia, another nation, and Japan.

While the US and China have since brokered a temporary agreement on rare earths, China—with around 70% of global mining and nearly all of international refining—holds an advantage that will be difficult to erode.

“Rare earths are used in EV engines but also in defense technology that have obvious applications for the defense department,” notes an industry expert. “Anything that has a decent magnet in it uses 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, chip manufacturing, and the shift from fossil fuels to renewable sources. According to federal reports, the US brought in 80% of the rare earths it used in 2024.

For some rare-earth minerals such as a key element, essential for semiconductors, 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 wind turbines, along with uses in cellphones, advanced lighting, and energy plants.

Long-Term Efforts and Global Deposits

Initiatives to reduce the US’s dependence 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 planet's surface, but many deposits, such as those in Eastern Europe, where a deal was signed recently, are only in the initial phases of mining.

“It’s not that there’s a shortage itself, it’s that China can control how much is exported,” an analyst said, noting 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 significant rare-earth resources. Domestically, there are reserves in the West, Wyoming, and Missouri, with the largest operational mine located at Mountain Pass, the state, about 60 miles from a major city.

Government Initiatives and Investment

Recently, the US Department of Defense became the major investor in a mining company, with intentions to open a new “mine-to-magnet” plant, named 10X, to produce magnets essential for military aircraft, drones, and submarines.

In North America, measured and indicated resources of rare earths were calculated at millions of tons in the US and additional millions in Canada—far less than the 44m tons believed to be in China.

Following government funding in the steel industry and domestic technology firms, the interior department said it was ready to make targeted funding in strategic resource firms.

“The US is up against government-backed investment because China is selecting these strategically that they want to invest in,” a cabinet member said during a address this spring.

The official suggested that the US could use a sovereign wealth fund to speed production. “How could the richest nation in the world not possess the largest sovereign wealth fund?” he asked.

Historical Obstacles and Prospects

US efforts to promote domestic production have floundered in the past when Chinese producers cut costs, making unsubsidized rare-earth development uneconomic against China’s lower cost of production and long-term strategic outlook.

In the past, a market expert testified before a US Senate committee that “those who invest in energy storage and supply chains now are poised to lead this industry for the foreseeable future. There is still time for the US but action is needed now.”

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 critical mineral and rare earths that you won’t know what to do with them,” the President told the media. This followed in the wake of a demand for compensation in the form of minerals from another country. In September, the authorities in Asia signed a contract with an American company, securing rights to minerals such as antimony and copper.

Prospects for Success

However, is America able to close its gap and weaken China’s hold on rare-earth supply chains? “The US has taken major measures already,” an analyst comments. The nation, he adds, cannot be “self-reliant in the short term because it requires years to bring a mine online and establish processing plants.”