Highlights
- President Trump has invested billions in domestic mining and magnet production through the Defense Production Act and bilateral deals, but the U.S. still lacks an integrated industrial policy to compete with China's vertically integrated rare earth empire.
- Despite aggressive federal financing exceeding $7 billion, America remains years behind in refining, heavy rare earth separation, and magnet fabrication—making momentum different from true supply chain resilience.
- Rare Earth Exchanges proposes a six-point strategic plan including:
- Global Rare Earth Alliance
- Critical Minerals Czar
- Strategic Reserve with floor pricing
- Specialized Industrial Zones
- Mobilized private capital to transform tactical strikes into systemic industrial strength
President Trump’s rare earth revolution—and a reality check. No modern U.S. president has done more to push rare earth elements (REE) and critical minerals into the heart of American industrial policy than Donald J. Trump. From the “One Big Beautiful Bill” to ongoing leveraging of the Defense Production Act (DPA) expansion and new bilateral deals across the Indo-Pacific, Trump has turned critical minerals from niche policy to national mission. The Departments of War, Energy, and Commerce have now poured billions into domestic mining, refining, and magnet-making capacity.
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But Rare Earth Exchanges™ (REEx) warns: momentum is not the same as resilience.
Despite the cascade of announcements, the United States still lacks the integrated industrial policy needed to close the mine-to-magnet gap. Trump’s rhetoric—suggesting that by 2026 America will have “more magnets than we know what to do with”—makes for strong political theatre but masks the truth: the U.S. remains years behind China in refining, heavy-rare-earth separation, and magnet fabrication.
Building the Arsenal of Industry—Then and Now
Federal financing under Trump has been vigorous. The Department of War has deployed over $2 billion to expand the National Defense Stockpile and another $5 billion through the Industrial Base Fund. Equity stakes in MP Materials, Trilogy Metals, as well as funding for myriad companies such as Ucore Rare Metals, signal a new willingness to wield capital strategically. The DFC and EXIM Bank have backed projects from Alaska to Virginia, while the DOE Loan Programs Office now takes warrants in companies it finances.
Still, these are tactical strikes—not a grand strategy. As REEx argues in “Dear President Trump: Strengthening America’s Rare Earth and Critical Mineral Strategy,” industrial policy must move beyond episodic funding toward systemic design. The United States needs a coherent architecture that coordinates domestic incentives, aligns allied supply chains, and bridges the valley between federal investment and private capital.
Six Fixes for a Real Industrial Strategy
In our open letter to President Trump, REEx outlined a six-point plan to turn progress into permanence:
- Forge a Global Rare Earth Alliance with allies to replace China’s scale advantage (this means revisiting the current tariff scheme, among other things)
- Appoint a Critical Minerals Czar to unify fragmented federal efforts across the board.
- Invest in American Talent through mining, metallurgy, and magnet-engineering education. This remains a far bigger deal than American media and politicians are ready to acknowledge.
- Stabilize Markets with a Strategic Rare Earth Reserve and floor pricing for NdPr. Not just a contractual commitment for one company.
- Build Industrial Zones where mines, refineries, and magnet plants co-locate under accelerated permits, tax breaks, and the like.
- Mobilize Private Capital via a National Critical Minerals Investment Fund and REEx-modeled “Ex-China” ETF designed by REEx.
Together, these measures form what REEx calls a “true industrial policy of freedom”— cooperative with allies, competitive with China, and consistent with American free-enterprise principles, yet tapping into the needed state-strengths.
Between Promise and Pretense
The U.S. has rediscovered the language of industrial strength, but not yet its holistic strategy and discipline. Without structural reform, America risks mistaking incremental advancement and political theater for industrial power. To outbuild Beijing’s vertically integrated rare earth empire, Washington must institutionalize—not improvise—its supply chain.
Rare Earth Exchanges™ acknowledges that President Trump has accomplished more than any modern leader in decades to revive America’s industrial base—but urges his administration to make 2026 a year of truth, not just triumphal talk. The nation’s lasting strength and independence will depend on turning momentum into real, measurable supply chain resilience.
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Bravo! I would add that establishing scholarships and aggressive recruitment from high schools to get young students on track for a career in earth sciences, geology, metallurgy, etc., (similar to what the Chinese are doing) will really get the ball rolling, and I would add we should be sponsoring summer camps for all ages to expose kids to the joy of boots-on-the-ground exploration of rocks and minerals. Show them how to recognize a stand of old Alder trees as a possible indication of past mining and ground disturbance that may reveal old claims that are worth investigating for possible re-opening. There is nothing like outdoor field experience to inspire and draw young talent into the joys of working in this wonderful world of mining and exploration, as well as the exciting spirit of being part of a national pride and strength that directly impacts their own futures and everyone they know. This is not just another Manhatten Project type effort, it is broader and more accessible to most people, but no less important. I truly hope the current Administration is reading your publication, and I will hope that they do have a strategy in place, but perhaps cannot publish it openly at this point, due to the fact that they need to get commitment to participation on board first, via private discussions. The latest cooperation announced between Poland and China is very alarming, so we need to get a global allied commitment in place immediately. Your efforts are very much appreciated.