Washington Races to Break China‘s Grip on Critical Minerals, Faces Steep Climb – The U.S. Department of Defense is intensifying efforts to establish an self-reliant supply chain for rare earth elements and other critical minerals, vital for defense technologies and green energy, but faces meaningful hurdles in overcoming China’s decades-long dominance in the field.

The push comes amid growing concerns over national security and economic vulnerability linked to reliance on China for these essential materials. Currently, China controls a substantial portion of the global supply chain, from mining and processing to magnet production. The DoD is reportedly investing in projects aimed at domestic mining and processing, including initiatives in states like Texas and Wyoming, but progress is slow.

According to a recent report in the Wall Street Journal,the U.S. is seeking to diversify its sources,including exploring options for minerals sourced from countries beyond china. However, establishing a complete “mine-to-magnet” supply chain is a complex undertaking. it requires not only securing raw materials but also building the infrastructure for separation, refining, and manufacturing – capabilities where China currently holds a significant advantage.

“The disparity in the intellectual firepower in China versus the United States with respect to these metals is pretty severe,” stated Chris Berry, president of House Mountain Partners, an independent metals analysis consultancy. China’s expertise extends to advanced metallurgical techniques and efficient processing methods developed over years of investment and innovation. Specifically, China dominates the production of neodymium magnets, crucial for electric vehicle motors and wind turbines.

Meanwhile, China is actively strengthening its position. Satellite imagery analyzed by Al Jazeera on August 7, 2025, reveals a surge in rare earth mining activity in Myanmar, a country rich in these resources. This expansion occurs largely in areas controlled by non-state armed groups, raising ethical and geopolitical concerns. Furthermore, the Chinese government is reportedly creating a formal catalog of its rare-earth specialists, aiming to prevent the outflow of critical technical knowledge, as reported by the Wall Street Journal on April 26, 2024.

Last year, China witnessed its highest number of overseas mining acquisitions in over a decade, according to the Financial Times (December 18, 2023). These acquisitions span continents, including investments in lithium mines in australia and copper projects in Africa, further consolidating China’s control over global mineral resources. Notable acquisitions included a 23.98% stake in the Manono lithium project in the Democratic Republic of Congo by China Molybdenum.

“China is not doing business differently-they are just doing more of it,” remarked preeya Baskaran, a specialist in supply chain security. This continued expansion underscores the challenges facing the U.S. and other nations seeking to reduce their dependence on China for critical minerals. The U.S. Geological Survey estimates that China currently accounts for approximately 70% of global rare earth element production.