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Not long ago, a top US official came back from a southern state displaying a small piece of metal, announcing it was the first rare-earth magnet made in the US in 25 years.

He indicated that this was proof the US is breaking “China’s chokehold on our supply chain.” Thanks to a recently opened rare-earth mineral refining facility in the state, he added, “We’re finally becoming independent again.”

Challenging Beijing's Control in Critical Materials

Ending Beijing's processing and manufacturing dominance in these minerals, which are crucial for advanced electronics, energy storage, and military equipment, is a top priority for the federal government. Using tariffs and other approaches, the US is betting on returning the industry home to American shores.

These measures prompted Beijing to limit rare-earth exports to the US and motivated US leaders to forge agreements with an ally, a partner, Cambodia, and a key Asian economy.

While the US and China have since brokered a temporary agreement on rare earths, Beijing—with around 70% of worldwide extraction and over 90% of international refining—holds an advantage that may prove challenging to overcome.

“These materials are used in EV engines but also in guidance systems that have obvious applications for the military,” notes an industry expert. “Anything that has a strong magnet in it requires rare earths.”

No Easy Fix for US Independence

It won't be simple for the US to reduce its reliance on imports from China of minerals critical to defense, semiconductor production, and the transition from traditional energy to renewable sources. Data from official sources, the US brought in the vast majority of the rare earths it consumed in 2024.

In the case of rare-earth minerals such as a key element, essential for semiconductors, and samarium, critical for military applications, China's control over processing rises to 99%. These elements are used in magnets crucial to electric engines and generators in wind turbines, along with applications for cellphones, advanced lighting, and energy plants.

Long-Term Efforts and Global Deposits

Efforts to cut the US’s reliance on Chinese production of rare-earth minerals may require a long time. Analysts point out that “Rare earths” is somewhat of a misnomer because they’re not that uncommon in the planet's surface, but many deposits, including those in Ukraine, where a deal was made earlier this year, are only in the initial phases of extraction.

“The issue isn't scarcity per se, it’s that China can limit how much is sent abroad,” an analyst explained, adding that obtaining export licenses 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 deposits. In the continental US, there are deposits in the West, Wyoming, and the central US, with the biggest active site operating at Mountain Pass, the state, about 60 miles from Las Vegas.

Government Initiatives and Investment

Recently, the Pentagon took on the role of the largest shareholder in a mining company, with plans to open a new “integrated” plant, named 10X, to produce magnets essential for military aircraft, 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—far less than the 44m tons estimated to be in China.

Mirroring direct investment in other sectors and domestic technology firms, the interior department said it was prepared to make direct investments in critical mineral companies.

“You’re competing against government-backed investment because China is picking these strategically that they aim to control,” a cabinet member said during a speech in April.

He floated that the US could utilize a national investment pool to speed production. “How could the richest nation in the world have the largest state investment fund?” he asked.

Historical Obstacles and Prospects

US efforts to support homegrown output have floundered in the past when China lowered prices, making unsupported rare-earth development uneconomic against Asia's competitive pricing and long-term strategic outlook.

Five years ago, a market expert testified before a US Senate committee that “nations that fund in energy storage and supply chains today are poised to lead this sector for the foreseeable future. There is still time for the US but action is needed now.”

Five years on, a scramble to build trading alliances around rare earths is speeding up.

“In about a year from now, we’ll have so much critical mineral and rare earths that you won’t know what to do with them,” a top leader told the media. That came eight months after a demand for compensation in the form of minerals from another country. In September, the government of Pakistan signed a contract with an US firm, securing rights to minerals such as key metals.

Can the US Succeed?

However, is America able to close its gap and loosen Beijing's grip on rare-earth global networks? “The US has taken major measures already,” a specialist says. The US, he continues, is unlikely to become “self-reliant in the short term because it takes time to bring a mine online and build refining capacity.”