U.S. Rare Earth Push Gains Urgency as China Tightens Export Controls

Highlights

• China controls 90% of global rare earth processing and has imposed new export restrictions, potentially disrupting U.S. high-tech and defense manufacturing.
• NioCorp Developments is developing a promising rare earth deposit in Nebraska, seeking $800 million in funding to establish a domestic minerals supply chain.
• U.S. leaders, including Congressman Don Bacon, are calling for urgent diversification of rare earth mineral sources to reduce dependence on China.

---

As the global trade battlebetween the United States and China intensifies, China has responded tonew U.S. tariffs by tightening its grip on rare earth mineral exports—materials critical for high-tech manufacturing and national defense. With China controlling approximately 90% of the world’s rare earth processing capacity, the move raises significant concerns for the U.S., which currently operates only one rare earth mine. The new export restrictions impact materials like neodymium and dysprosium, essential for electronics, electric vehicles, and weapons systems.

This recent report comes courtesy of KETV NewsWatch 7 (opens in a new tab). 

Deep beneath Johnson County, Nebraska lies one of America’s most promising untapped rare earth deposits. The site, under development by NioCorp Developments Ltd., (opens in a new tab) could someday supply key minerals domestically, but construction is still at least three years away. CEO Mark Smith emphasized that while the U.S. possesses the technical know-how, building out the full supply chain—from extraction to separation and refining—will take time, government coordination, and strategic investment.

Smith warned that China’s export restrictions have profound national security implications, potentially crippling U.S. defense manufacturing. Without access to these materials, the production of fighter jets and guided missiles could stall. Smith called for expedited federal action to support domestic rare earth infrastructure and emphasized that the country had previously achieved such industrial feats—implying that it can again with the right strategic commitment.

Support for the effort is growing on Capitol Hill. Nebraska Congressman Don Bacon, while backing the latest tariffs, acknowledged the U.S. must urgently diversify its rare earth supply, possibly including foreign sources like Greenland. Bacon characterized China as a predatory actor in global markets, arguing the U.S. must retaliate economically while also reinforcing domestic capacity.

Despite having secured the necessary environmental and operational permits, NioCorp is still awaiting financial backing to break ground. The company is undergoing an $800 million review with a major bank and pursuing an additional $400 million from investors. While the path forward remains complex and capital-intensive, industry leaders insist that a domestic rare earth renaissance is within reach with unified political will and strategic financing.