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Last week, a top US official returned from a southern state displaying a tiny sample of metal, declaring it was the first rare-earth magnet manufactured in the US in decades.

He indicated that this was proof the US is overcoming “China’s chokehold on our industrial pipeline.” Due to a new rare-earth mineral manufacturing plant in the state, the official continued, “We’re finally becoming independent again.”

Challenging Beijing's Control in Critical Materials

Overthrowing China’s refining and production supremacy in these materials, which are essential for advanced electronics, energy storage, and armaments, is a top priority for the federal government. Through trade measures and other approaches, the US is betting on bringing the industry home to domestic facilities.

Such tariffs prompted China to restrict rare-earth exports to the US and pushed the administration to sign deals with Australia, Malaysia, another nation, and a key Asian economy.

Although the US and China have since brokered a trade truce on rare earths, China—with approximately the majority of worldwide extraction and nearly all of international refining—holds an advantage that may prove challenging to diminish.

“These materials are essential for electric motors but also in guidance systems that have clear uses for the defense department,” notes an industry expert. “Anything that has a strong magnet in it requires rare earths.”

Challenging Path for American Self-Sufficiency

There’s no easy fix for the US to reduce its dependence on Chinese production of minerals essential to national security, semiconductor production, and the transition from traditional energy to wind and solar. Data from federal reports, the US brought in 80% of the rare earths it used in recent years.

In the case of rare-earth minerals such as dysprosium, used in semiconductors, and another mineral, essential to military applications, China's control over processing rises to 99%. These elements are found in magnets crucial to EV motors and power systems in renewable energy, along with applications for mobile devices, high-intensity lighting, and energy plants.

Long-Term Efforts and International Resources

Initiatives to reduce the US’s reliance on Chinese production of rare-earth minerals could take years. Experts note that “These minerals” is somewhat of a misnomer because they’re not that uncommon in the planet's surface, but many deposits, including those in Ukraine, where an agreement was made earlier this year, are only in the early stages of mining.

“It’s not that there’s a shortage itself, it’s that Beijing can control how much is sent abroad,” a specialist said, adding that securing export licenses from China can be a complex and time-consuming endeavor.

The Arctic region, another focus of US attention, and South America, are additional nations with substantial rare-earth resources. In the continental US, there are deposits in the West, the Midwest, and the central US, with the biggest active site located at Mountain Pass, California, about 60 miles from Las Vegas.

Federal Efforts and Investment

In July, the Pentagon became the largest shareholder in a mining company, with plans to open a new “integrated” plant, called 10X, to produce magnets essential for F-35 fighter jets, unmanned systems, and naval vessels.

In North America, measured and indicated resources of rare earths were estimated to include 3.6m tons in the US and more than 14m tons in Canada—far less than the vast reserves believed to be in China.

Mirroring government funding in other sectors and domestic technology firms, the interior department announced it was ready to make direct investments in strategic resource firms.

“You’re competing against government-backed investment because Beijing is selecting these as priority areas that they aim to control,” a senior official said during a address this spring.

He floated that the US could use a sovereign wealth fund to speed production. “Why wouldn’t the richest nation in the world have the biggest sovereign wealth fund?” he questioned.

Historical Obstacles and Future Outlook

US efforts to promote domestic production have floundered in the past when China cut costs, rendering unsupported rare-earth development unprofitable against Asia's competitive pricing and long-term strategic outlook.

Five years ago, a market expert stated before a congressional panel that “those who invest in battery capacity and industrial networks now are likely to lead this industry for generations to come. It is not too late for the US but action is needed now.”

Since then, a scramble to assemble trading alliances around rare earths is speeding up.

“In about a year from now, we’ll have so much critical mineral and rare earths that you won’t know what to do with them,” the President told reporters. That came in the wake of a request for compensation in the form of minerals from another country. More recently, the government of Pakistan agreed to a contract with an American company, giving it access to minerals such as antimony and copper.

Can the US Succeed?

But, can the US make up 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 US, he continues, is unlikely to become “self-reliant in the short term because it requires years to bring a mine online and establish processing plants.”