Highlights
- China controls over 60% of rare earth mining and 85% of global processing, creating a strategic vulnerability for Western nations.
- U.S. defense systems like the F-35 fighter jet still depend on Chinese-origin rare earth components despite trade tensions.
- Multilateral strategies including stockpiling, permitting reform, and allied coordination are needed to challenge China’s rare earth monopoly.
In a timely op-ed published by The Telegraph India (opens in a new tab), Upasna Mishra—PhD scholar at Jadavpur University—warns that rare earth elements (REEs) have graduated from niche commodities to strategic levers in the geopolitical tug-of-war between the United States and China. As U.S. tariffs rise and tensions escalate, Mishra argues that global dependence on China’s rare earth supply chain has exposed a structural vulnerability with sweeping implications for defense, industry, and technology.
China’s dominance is undisputed: it controls ~60% of mining, ~85% of global REE processing, and over 90% of permanent magnet production. Mishra attributes this dominance to a decades-long strategy of state-subsidized overproduction, which deliberately undercut Western producers and collapsed competition—epitomized by the 2015 bankruptcy of California’s Mountain Pass mine.
The op-ed highlights the irony in U.S. trade policy: while the Biden administration slaps tariffs on Chinese EVs and rare earth magnets, many of those same products rely on Chinese supply chains for upstream inputs. Mishra points to the F-35 fighter jet as a key example—advanced U.S. defense hardware still depends on Chinese-origin REE components.
Even where revival efforts exist—such as Mountain Pass resuming rare earth ore production—the ore is still shipped to China for processing. Western projects face significant hurdles including permitting delays, higher environmental costs, and lack of processing infrastructure.
Mishra calls for a multilateral strategy: stockpiling, permitting reform, investment in REE recycling, and allied coordination. But she raises unresolved concerns critical for investors:
- Can the U.S. or EU realistically compete on processing capacity without massive subsidies?
- How quickly can a viable Western supply chain be built to match military timelines?
- Will tariffs hurt U.S. EV manufacturers more than they help?
While the article stops short of forecasting timelines or economic impacts, it reinforces a message vital to Rare Earth Exchanges (REEx) readers: rare earth elements are now geopolitical weapons. Navigating this new landscape requires not just capital—but coordination, clarity, and industrial courage.
Rare Earth Exchanges Bias Meter™
| Category | Score | Notes |
| Factual Accuracy | 8 | China’s REE dominance and history well-supported |
| Speculative Content | 6 | Assumes global cooperation and policy reform without detailing execution |
| Bias Detection | 7 | Balanced critique with limited national favoritism |
| Investor Relevance | 9 | Critical insights into supply risk and Western cost barriers |
| Overall Clarity | 8 | Well-structured, with clear strategic framing |
Source: The Telegraph India, “The War on Metals (opens in a new tab)” by Upasna Mishra, July 2, 2025
Leave a Reply