Rare Earth Exchanges

U.S. Moves to Block China, Offers Dominican Republic Support for Rare Earth Extraction

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Highlights

  • US Secretary of State Marco Rubio offers strategic support to the Dominican Republic for rare earth extraction.
  • The initiative aims to counter China’s global supply chain control.
  • US Army engineers confirmed over 100 million tonnes of rare earth materials in the Dominican Republic.
  • The reserves present significant potential for economic transformation.
  • Washington seeks to disrupt China’s rare earth monopoly.
  • The goal is to secure an alternative supply of critical materials essential for advanced electronics and military defense systems.

The United States has stepped into the rare earth battleground once again, this time extending its support to the Dominican Republic in extracting its vast critical mineral reserves.

As reported by Narayan Ammachchi of Nearshore Americas (opens in a new tab), the move is a direct counter to China’s dominance in the global rare earth supply chain—and a clear signal that Washington is not willing to let another nation fall under Beijing’s economic influence.

Dominican Republic

Dominican Republic | History, People ...
Source: Britannica

Until recently, rare earths were barely a topic of discussion in the Dominican Republic. That changed when U.S. Secretary of State Marco Rubio arrived in the capital, standing alongside President Luis Abinader to announce Washington’s willingness to assist. Rubio’s message was unambiguous: the Dominican Republic has a choice—align with a trusted ally or turn to a foreign power that is “neither an ally nor a friend.”

The stakes are high. U.S. Army engineers, working under contract with the Dominican government, confirmed the existence of over 100 million tonnes of rare earth materials in the Caribbean nation. Recognizing the significance of this discovery, the Dominican Republic has established Empresa Minera Dominicana, a new state-run entity tasked with managing mineral extraction and exports.

The potential economic transformation is massive, with government officials already eyeing rare earths as a way to diversify the country’s economy beyond agriculture and tourism.

USA Under Trump Working to Stop China’s Expansion of Mining Interests

For the U.S., the play is strategic. China currently controls over 70%+ of the world’s rare earth processing, an economic chokehold that has allowed Beijing to exert significant influence over global supply chains. By stepping in early, Washington aims to disrupt China’s monopoly and secure an alternative supply of these critical materials, essential for everything from advanced electronics to military defense systems.

But questions remain. Will the Dominican Republic prioritize environmental and labor concerns as it moves forward with extraction? Will U.S. companies be given preferential access to mining operations? And most importantly—how will China respond?

One thing is certain: the rare earth race is heating up, and Washington just made sure the Dominican Republic is now part of the fight.  Rare Earth Exchanges certainly emerged at the right time.

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