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Last week, the US Treasury Secretary came back from a southern state displaying a tiny sample of metal, announcing it was the first rare-earth magnet produced in the US in 25 years.

He indicated that this was evidence the US is breaking “Beijing's grip on our industrial pipeline.” Thanks to a new rare-earth mineral manufacturing plant in the state, he noted, “We’re finally becoming independent again.”

Countering Beijing's Control in Essential Minerals

Reducing Beijing's processing and manufacturing dominance in these minerals, which are essential for advanced electronics, batteries, and armaments, is a major focus for the federal government. Through economic tools and other approaches, the US is betting on returning the industry home to US soil.

These tariffs led China to limit rare-earth shipments to the US and motivated US leaders to sign deals with Australia, Malaysia, another nation, and Japan.

While the US and China have since brokered a trade truce on rare earths, Beijing—with approximately 70% of worldwide extraction and nearly all of global processing capacity—has a head start that will be difficult to erode.

“Rare earths are essential for electric motors but also in defense technology that have clear uses for the military,” says an industry expert. “Anything that has a strong magnet in it uses rare earths.”

Challenging Path for US Independence

There’s no easy fix for the US to reset its dependence on Chinese production of minerals critical to national security, chip manufacturing, and the shift from fossil fuels to wind and solar. According to federal reports, the US brought in the vast majority of the rare earths it consumed in recent years.

For some rare-earth minerals such as a key element, used in chip production, and samarium, essential to military applications, China's control over processing reaches almost total. Dysprosium and terbium are used in magnets essential for EV motors and power systems in renewable energy, along with applications for mobile devices, high-intensity lighting, and nuclear reactors.

Extended Timelines and International Resources

Efforts to cut the US’s reliance on Chinese production of rare-earth minerals may require a long time. Experts note that “These minerals” is not entirely accurate because they’re not that uncommon in the planet's surface, but many reserves, such as those in Ukraine, where a deal was made earlier this year, are only in the early stages of extraction.

“The issue isn't scarcity itself, it’s that China can control how much is sent abroad,” a specialist explained, adding that securing export licenses from China can be a complex and time-consuming endeavor.

Greenland, another focus of US attention, and Brazil, are additional nations with substantial rare-earth deposits. Domestically, there are reserves in the West, the Midwest, and the central US, with the largest operational mine located at Mountain Pass, California, not far from a major city.

Federal Efforts and Investment

Recently, the Pentagon became the largest shareholder in a mining company, with plans to open a new “integrated” plant, called a new facility, to produce magnets crucial for military aircraft, drones, and submarines.

Across the continent, measured and indicated resources of rare earths were calculated at 3.6m tons in the US and more than 14m tons in Canada—significantly lower than the 44m tons believed to be in the Asian giant.

Following direct investment in the steel industry and domestic technology firms, the federal agency said it was ready to make targeted funding in critical mineral companies.

“The US is up against government-backed investment because China is picking these as priority areas that they aim to control,” a cabinet member said during a speech this spring.

The official suggested that the US could use a sovereign wealth fund to accelerate production. “How could the wealthiest country in the world not possess the largest state investment fund?” he questioned.

Past Challenges and Prospects

American attempts to support homegrown output have floundered in the past when China lowered prices, rendering unsubsidized rare-earth development unprofitable against Asia's competitive pricing and long-term strategic outlook.

Five years ago, an industry leader testified before a congressional panel that “nations that fund in battery capacity and supply chains today are likely to lead this sector for generations to come. There is still time for the US but action is needed now.”

Since then, a race to build trading alliances around rare earths is accelerating.

“Soon, we’ll have so much critical mineral and rare earths that you won’t know what to do with them,” the President informed reporters. That came eight months after a request for payment in the form of natural resources from Ukraine. More recently, the government of Pakistan signed a deal with an American company, giving it access to minerals such as antimony and copper.

Prospects for Success

But, is America able to close its gap and loosen China’s hold on rare-earth supply chains? “The US has taken really significant steps so far,” an analyst comments. The nation, he continues, is unlikely to become “self-reliant in the near future because it takes time to bring a mine online and establish processing plants.”