US Prioritizes Revival of Rare-Earth Mineral Production to Reduce Dependence on China
The White House has made reviving US rare-earth production a top priority, employing tariffs and other measures to reduce reliance on China. In 2024, the US imported about 80% of its rare-earth elements, while China accounted for approximately 70% of global mining and over 90% of processing.
In South Carolina, eVAC’s new rare-earth processing center was highlighted when Scott Bessent showcased a rare-earth magnet, citing it as evidence of progress toward less dependence on China. The Mountain Pass mine in California, the largest in the US, has seen increased Pentagon involvement, which became the sector’s largest shareholder in July. There are plans for a tenfold expansion of its mine-to-magnet facility to supply magnets used in F-35 jets, drones, and submarines.
Despite these efforts, the US and Canada together hold far fewer rare-earth reserves than China (approximately 3.6 million tons versus China’s 44 million tons). Major US deposits are found in California, Wyoming, and Missouri, with Mountain Pass near Las Vegas serving as the flagship site. China's dominance in refining remains a significant bottleneck, with lengthy export licensing complicating a swift move away from Chinese processing. To diversify sources, Greenland and Brazil are targeted alongside existing deals with Ukraine and Pakistan.
The Interior Department has indicated it is prepared to directly invest in critical-mineral companies, with officials proposing a sovereign wealth fund to accelerate production further. Additionally, a rare-earth trade truce between the US and China has been brokered as part of the broader strategy to secure supply chains.
