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Not long ago, the US Treasury Secretary came back from South Carolina holding up a tiny sample of metal, declaring it was the first rare-earth magnet manufactured in the US in a quarter of a century.

He remarked that this was evidence the US is overcoming “China’s chokehold on our industrial pipeline.” Because of a recently opened rare-earth mineral processing center in the state, he added, “We’re finally becoming independent again.”

Countering Beijing's Control in Critical Materials

Ending Beijing's refining and production supremacy in these materials, which are crucial for some semiconductors, batteries, and armaments, is a major focus for the current US administration. Using trade measures and other strategies, the US is relying on returning the industry back to American shores.

These tariffs led Beijing to limit rare-earth shipments to the US and pushed the administration to sign deals with an ally, a partner, another nation, and a key Asian economy.

While the US and China have since reached a trade truce on rare earths, China—with around 70% of worldwide extraction and over 90% of international refining—holds an advantage that will be difficult to diminish.

“Rare earths are essential for electric motors but also in guidance systems that have obvious applications for the military,” says an industry expert. “Anything that has a decent magnet in it requires rare earths.”

Challenging Path for US Independence

It won't be simple for the US to reduce its reliance on Chinese production of minerals essential to defense, semiconductor production, and the shift from traditional energy to wind and solar. Data from federal reports, the US imported 80% of the rare earths it consumed in 2024.

In the case of rare-earth minerals such as a key element, essential for chip production, and samarium, essential to defense systems, Chinese refinement dominance rises to almost total. These elements are found in magnets crucial to electric engines and generators in wind turbines, along with applications for mobile devices, advanced lighting, and nuclear reactors.

Long-Term Efforts and International Resources

Efforts to cut the US’s reliance on Chinese production of rare-earth minerals could take years. Analysts point out that “These minerals” is somewhat of a misnomer because they’re not that uncommon in the planet's surface, but many deposits, including those in Eastern Europe, where a deal was made recently, are only in the initial phases of mining.

“The issue isn't scarcity per se, it’s that Beijing can limit how much is sent abroad,” an analyst explained, noting that obtaining permits from China can be a lengthy, difficult process.

Greenland, another focus of American interest, and Brazil, are two other countries with substantial rare-earth resources. Domestically, there are reserves in the West, Wyoming, and Missouri, with the biggest active site located at Mountain Pass, the state, not far from Las Vegas.

Government Initiatives and Investment

Recently, the US Department of Defense 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, unmanned systems, and submarines.

In North America, measured and indicated resources of rare earths were calculated at 3.6m tons in the US and additional millions in Canada—significantly lower than the vast reserves estimated to be in China.

Following government funding in other sectors and US chipmakers, the federal agency announced it was prepared to make targeted funding in strategic resource firms.

“The US is up against state capital because Beijing is picking these strategically that they want to invest in,” a cabinet member said during a address this spring.

The official suggested that the US could utilize a national investment pool to speed production. “Why wouldn’t the wealthiest country in the world have the biggest sovereign wealth fund?” he questioned.

Past Challenges and Future Outlook

US efforts to promote homegrown output have floundered in the past when Chinese producers cut costs, rendering unsupported 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 “nations that fund in battery capacity and industrial networks today are likely to lead this sector for the foreseeable future. There is still time for the US but action is needed now.”

Since then, a scramble to assemble international partnerships around rare earths is accelerating.

“Soon, we’ll have an abundance of critical mineral and rare earths that you won’t know what to do with them,” the President informed the media. That came in the wake of a request for compensation in the form of natural resources from another country. More recently, the authorities in Asia agreed to a deal with an American company, giving it access to minerals such as antimony and copper.

Can the US Succeed?

However, is America able to close its shortfall and loosen China’s hold on rare-earth global networks? “America has implemented really significant steps so far,” an analyst comments. The nation, he adds, is unlikely to become “independent in the short term because it requires years to start operations and build refining capacity.”