Exploring Trump's Scramble to Cut US Reliance on Chinese Critical Minerals

Recently, the US Treasury Secretary returned from South Carolina brandishing a tiny sample of metal, proclaiming it was the first rare-earth magnet produced in the US in 25 years.

The official stated that this was a sign the US is ending “Beijing's grip on our supply chain.” Due to a recently opened rare-earth mineral refining facility in the state, the official continued, “We’re finally becoming independent again.”

Breaking China’s Dominance in Essential Minerals

Overthrowing Beijing's refining and production supremacy in these minerals, which are essential for some semiconductors, batteries, and armaments, is a major focus for the federal government. Through tariffs and other approaches, the US is counting on bringing the industry home to US soil.

Such tariffs prompted China to restrict rare-earth exports to the US and motivated US leaders to forge agreements with an ally, a partner, another nation, and Japan.

Although the US and China have now reached a trade truce on rare earths, Beijing—with around 70% of global mining and over 90% of international refining—holds an advantage that will be difficult to diminish.

“Rare earths are essential for EV engines but also in guidance systems that have clear uses for the defense department,” says an industry expert. “Any device that has a decent magnet in it uses rare earths.”

No Easy Fix for American Self-Sufficiency

It won't be simple for the US to reduce its dependence on imports from China of minerals essential to defense, semiconductor production, and the transition from traditional energy to renewable sources. According to federal reports, the US imported 80% of the rare earths it consumed in 2024.

In the case of rare-earth minerals such as a key element, used in chip production, and samarium, essential to military applications, Chinese refinement dominance reaches almost total. These elements are used in magnets crucial to electric engines and power systems in renewable energy, along with applications for mobile devices, high-intensity lighting, and energy plants.

Long-Term Efforts and Global Deposits

Efforts to cut the US’s dependence on China's output 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 earth’s crust, but many deposits, such as those in Eastern Europe, where a deal was made recently, are only in the early stages of extraction.

“The issue isn't scarcity itself, it’s that Beijing can control how much is exported,” a specialist said, noting that obtaining permits from China can be a complex and time-consuming endeavor.

Greenland, another focus of American interest, and South America, are additional nations with substantial rare-earth deposits. In the continental US, there are deposits in the West, the Midwest, and the central US, with the largest operational mine located at a key location, the state, not far from Las Vegas.

Federal Efforts and Investment

In July, 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, drones, and submarines.

Across the continent, estimated reserves of rare earths were calculated at millions of tons in the US and additional millions in the northern neighbor—far less than the 44m tons estimated to be in the Asian giant.

Following government funding in the steel industry and US chipmakers, the interior department announced it was prepared to make direct investments in strategic resource firms.

“The US is up against government-backed investment because Beijing is selecting these strategically that they want to invest in,” a senior official stated during a address 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 biggest sovereign wealth fund?” he questioned.

Historical Obstacles and Future Outlook

US efforts to support domestic production have floundered in the past when China cut costs, rendering unsupported rare-earth development uneconomic against China’s lower cost of production and far-sighted planning.

In the past, a market expert testified before a US Senate committee that “those who invest in battery capacity and industrial networks today are likely to lead this industry for the foreseeable future. There is still time for the US but action is needed now.”

Five years on, a scramble to build international partnerships around rare earths is accelerating.

“In about a year from now, we’ll have an abundance of critical mineral and rare earths that you won’t know what to do with them,” a top leader informed reporters. That came eight months after a request for payment in the form of minerals from Ukraine. More recently, the government of Pakistan signed a contract with an US firm, securing rights to minerals such as antimony and copper.

Can the US Succeed?

However, is America able to close its shortfall and weaken China’s hold on rare-earth global networks? “America has implemented really significant steps so far,” a specialist says. The US, he adds, is unlikely to become “independent in the near future because it takes time to start operations and build refining capacity.”