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Recently, the US Treasury Secretary came back from South Carolina brandishing a tiny sample of metal, declaring it was the initial rare-earth magnet produced in the US in 25 years.

He remarked that this was evidence the US is overcoming “China's dominance on our supply chain.” Due to a new rare-earth mineral manufacturing plant in South Carolina, the official continued, “America is reclaiming its self-sufficiency.”

Countering Beijing's Control in Essential Minerals

Ending China’s refining and production supremacy in these minerals, which are vital for some semiconductors, batteries, and armaments, is a key goal for the current US administration. Via economic tools and other approaches, the US is counting on returning the industry home to US soil.

Such tariffs led Beijing to limit rare-earth exports to the US and pushed US leaders to forge agreements with an ally, Malaysia, Cambodia, and Japan.

While the US and China have since reached a temporary agreement on rare earths, China—with around 70% of worldwide extraction and nearly all of global processing capacity—has a head start that will be difficult to overcome.

“Rare earths are essential for electric motors but also in defense technology that have clear uses for the military,” notes a market analyst. “Anything that has a decent magnet in it uses rare earths.”

No Easy Fix for US Independence

There’s no easy fix for the US to reset its reliance on imports from China of materials essential to defense, semiconductor production, and the shift from traditional energy to wind and solar. Data from official sources, the US imported the vast majority of the rare earths it consumed in 2024.

In the case of rare-earth minerals such as dysprosium, used in semiconductors, and another mineral, critical for military applications, Chinese refinement dominance rises to almost total. These elements are found in magnets crucial to EV motors and power systems in renewable energy, along with applications for mobile devices, advanced lighting, and nuclear reactors.

Extended Timelines and International Resources

Efforts to reduce the US’s reliance on Chinese production of rare-earth minerals may require a long time. Analysts point out that “These minerals” is somewhat of a misnomer because they’re not that uncommon in the earth’s crust, but many deposits, including those in Ukraine, where a deal was signed recently, are only in the initial phases of mining.

“The issue isn't scarcity itself, it’s that China can control how much is sent abroad,” an analyst said, adding that securing permits from China can be a lengthy, difficult process.

Greenland, another focus of American interest, and South America, are additional nations with substantial rare-earth deposits. In the continental US, there are reserves in the West, Wyoming, and Missouri, with the largest operational mine operating at a key location, the state, about 60 miles from Las Vegas.

Federal Efforts and Funding

Recently, the US Department of Defense became the largest shareholder in a mining company, with intentions to open a new “integrated” plant, called 10X, to make magnets essential for military aircraft, drones, and naval vessels.

Across the continent, measured and indicated resources of rare earths were calculated at millions of tons in the US and more than 14m tons in Canada—far less than the 44m tons estimated to be in China.

Mirroring direct investment in other sectors and domestic technology firms, the federal agency announced it was prepared to make direct investments in critical mineral companies.

“You’re competing against government-backed investment because Beijing is selecting these strategically that they want to invest in,” a cabinet member said during a speech this spring.

He suggested that the US could utilize a national investment pool to accelerate production. “Why wouldn’t the wealthiest country in the world have the biggest state investment fund?” he asked.

Historical Obstacles and Prospects

American attempts to promote domestic production have floundered in the past when Chinese producers lowered prices, making unsupported rare-earth development uneconomic against China’s lower cost of production and far-sighted planning.

In the past, an industry leader stated before a congressional panel that “those who invest in energy storage and supply chains now are likely to dominate this industry for generations to come. There is still time for the US but immediate steps are required.”

Five years on, a scramble to assemble trading alliances around rare earths is accelerating.

“Soon, we’ll have an abundance of critical mineral and rare earths that supply will exceed demand,” a top leader told the media. That came eight months after a request for compensation in the form of natural resources from another country. More recently, the authorities in Asia agreed to a contract with an American company, securing rights to minerals such as antimony and copper.

Prospects for Success

But, can the US make up its shortfall and weaken Beijing's grip on rare-earth supply chains? “The US has taken really significant steps already,” a specialist says. The US, he continues, is unlikely to become “independent in the near future because it requires years to bring a mine online and build refining capacity.”