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Last week, a top US official came back from South Carolina holding up 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 dominance on our supply chain.” Because of a new rare-earth mineral processing center in the state, the official continued, “America is reclaiming its self-sufficiency.”

Challenging Beijing's Control in Critical Materials

Ending China’s refining and production supremacy in these minerals, which are crucial for some semiconductors, energy storage, and military equipment, is a top priority for the federal government. Through economic tools and other approaches, the US is relying on bringing the industry back to American shores.

These measures prompted Beijing to restrict rare-earth shipments to the US and motivated US leaders to forge agreements with an ally, a partner, Cambodia, and a key Asian economy.

Although the US and China have since brokered a trade truce on rare earths, Beijing—with approximately 70% of worldwide extraction and over 90% of global processing capacity—holds an advantage that will be difficult to diminish.

“These materials are used in EV engines but also in defense technology that have clear uses for the military,” says an industry expert. “Any device 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 reset its dependence on imports from China of materials critical to national security, semiconductor production, and the shift from traditional energy to wind and solar. Data from official sources, the US imported 80% of the rare earths it used in 2024.

For some rare-earth minerals such as a key element, used in semiconductors, and another mineral, critical for military applications, Chinese refinement dominance reaches 99%. Dysprosium and terbium are used in magnets crucial to EV motors and generators in renewable energy, along with uses in cellphones, high-intensity lighting, and nuclear reactors.

Extended Timelines and International Resources

Initiatives to reduce the US’s reliance on China's output of rare-earth minerals may require a long time. Analysts point out that “These minerals” is not entirely accurate because they’re relatively abundant in the planet's surface, but many reserves, such as 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 China can control how much is exported,” a specialist explained, adding that securing permits from China can be a lengthy, difficult process.

Greenland, another focus of US attention, and Brazil, are two other countries with substantial rare-earth deposits. In the continental US, there are deposits in the West, the Midwest, and Missouri, with the largest operational mine operating at a key location, California, about 60 miles from a major city.

Government Initiatives and Funding

Recently, the US Department of Defense became the major investor in a mining company, with intentions to open a new “mine-to-magnet” plant, named 10X, to produce magnets crucial for F-35 fighter jets, drones, and submarines.

In North America, measured and indicated resources of rare earths were calculated at 3.6m tons in the US and additional millions in the northern neighbor—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 interior department said it was prepared to make targeted funding in strategic resource firms.

“The US is up against government-backed investment because Beijing is selecting these as priority areas that they want to invest in,” a cabinet member stated during a address this spring.

The official floated that the US could utilize a national investment pool to speed production. “Why wouldn’t the richest nation in the world not possess the biggest sovereign wealth fund?” he asked.

Past Challenges and Future Outlook

American attempts to promote homegrown output have struggled in the past when Chinese producers lowered prices, making unsupported rare-earth development unprofitable against Asia's competitive pricing and long-term strategic outlook.

In the past, a market expert stated before a congressional panel that “those who invest in battery capacity and industrial networks today are likely to dominate this industry for the foreseeable future. It is not too late for the US but action is needed now.”

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

“Soon, we’ll have an abundance of essential resources that you won’t know what to do with them,” the President told the media. That came in the wake of a demand for payment in the form of minerals from Ukraine. More recently, the authorities in Asia signed a deal with an American company, securing rights to minerals such as key metals.

Prospects for Success

However, can the US make up its gap and loosen China’s hold on rare-earth supply chains? “The US has taken major measures so far,” a specialist comments. The nation, he continues, is unlikely to become “independent in the near future because it requires years to start operations and build refining capacity.”