U.S. Intensifies Global Mineral Diplomacy in Bid to End China‘s Rare Earth Dominance
WASHINGTON – The United States is undertaking its most enterprising effort to secure critical mineral supply chains since the Cold War,forging new partnerships and aiming to rebuild domestic production as concerns mount over China’s control of rare earth elements vital to national security and technological advancement.
China currently dominates the rare earth industry, controlling approximately 70 percent of global mining and nearly 90 percent of refining – the most strategically critically important stage in the process. These minerals are essential components in modern weapons systems, electric vehicles, and a wide range of high-tech applications.
The Biden governance is responding with a multi-pronged strategy. Recent agreements with Rwanda and the Democratic Republic of the Congo aim to establish traceable and sustainable mineral supply routes. Simultaneously, a reconstruction fund for Ukraine will grant U.S. companies preferential access to future mining projects within the country.
These international collaborations are intended to diversify supply and lessen reliance on China,but officials emphasize the need for a robust domestic industry. The Pentagon faces a 2027 mandate to establish a fully domestic rare-earth supply chain - encompassing mining, processing, and magnet production – free from Chinese inputs.
Achieving this goal requires overcoming significant hurdles, including streamlining the permitting process for new mines and refineries, securing financing, and rebuilding a skilled workforce that largely disappeared after the industry’s decline two decades ago.
“The international deals may buy time,” said Jeff Senti,founder of American Rare Earths,”but they’re no substitute for restoring the industrial base that once made us the world’s undisputed source of strategic minerals.”
Experts like Senti and Mark Hunter, CEO of Mountain Pass Rare Earth, believe the next few years are critical. The materials that fueled American innovation during the Cold War now underpin China’s economic and military strength.
“We have to reform permitting so we can actually build mines and refineries here,” Hunter stated. “We can’t keep pretending it’s someone else’s problem while importing everything.”
At Mountain Pass in the Mojave Desert, mining operations have resumed, representing a tangible step towards rebuilding American capacity. However, the U.S. faces a considerable challenge as China continues to strengthen its position in the global rare earth market. The nation’s effort to regain ground in this crucial resource race is only beginning.
