Highlights
- China controls 92% of global rare earth element refining, creating a critical geopolitical and economic vulnerability for the United States.
- Major automakers and defense industries warn of potential production halts due to China’s export restrictions on rare earth elements.
- The U.S. requires comprehensive industrial policy and massive investment to rebuild domestic rare earth supply chain resilience and reduce dependence on Chinese minerals.
While U.S. media continues to downplay the escalating concerns voiced by major industrial players and allied governments, industrial alarm bells are ringing loudly across the West. Influential podcasts—many of which helped shape public opinion during Trump’s rise—remain silent, or when they do mention the crisis, treat it with a cursory, dismissive tone. The disconnect between public discourse and strategic industrial reality is becoming impossible to ignore.
While much of the American corporate media outlets stay silent, a global supply chain crisis is erupting—and it may be the most strategic threat yet to U.S. industrial power. Beijing has activated its most potent economic weapon: its dominance over rare earth elements (REEs), the foundational materials behind everything from F-35 fighter jets and electric vehicles to AI chips and submarine sonar.
Growing alarmism comes from the press in Europe, including the UK entries, such as Hans van Leeuwen’s recent piece in The Telegraph (opens in a new tab). Rare Earth Exchanges in the USA has emerged as a market leader for retail investors, industry, and policy-related updates in the sector of rare earth elements supply chains.
Following President Trump’s April 2 announcement of sweeping tariffs on Chinese goods, Beijing retaliated with a devastating export restriction on REE-containing alloys, including dysprosium, terbium, samarium, and gadolinium—elements that power the permanent magnets inside nearly every advanced defense and tech system the West builds.
Europe’s Screaming. America’s Not Listening.
By May 9, major U.S. automakers—General Motors, Toyota, Volkswagen, and Hyundai—sounded the alarm in a joint letter to the White House, warning that unless rare earth flows resumed, production lines would soon halt. President Trump, under pressure, scaled back the tariffs in a back-channel deal in Geneva. China quietly resumed some exports, but on China’s terms. A new export licensing regime now delays shipments by 45 days or more, requiring detailed composition testing and sensitive IP disclosures.
This is a pivotal moment, and retail investors must recognize it as both a major crisis and a generational investment opportunity. But seizing it will require more than market instincts. The U.S. government must develop a cohesive industrial strategy, backed by tens of billions (if not hundreds of billions) in funding, to rebuild rare earth supply chains from the ground up. This cannot be done alone—it will require tight coordination with allies and a multinational, synchronized approach across mining, refining, and magnet manufacturing. Yet, so far, American media remains virtually silent, ignoring a strategic threat that is unfolding in plain sight. Yes, behind the scenes, anxiety intensifies, and emergency orders and a 232 action are a start, but far more is needed.
The Real Numbers and the Real Stranglehold
According to the International Energy Agency, China mines 61% of the world’s rare earths but controls 92% of global refining—the chokepoint that matters most. As David Merriman of Project Blue puts it: “The further down the supply chain you go—from ore to magnets—China’s grip only gets tighter.”
That grip now extends into America’s defense readiness, electric vehicle (EV) transition, chip manufacturing, and aerospace sectors. Trump has floated long-term alternatives like Ukraine and Greenland, but the IEA estimates China will still control 85% of the refined REE supply a decade from now. There is no near-term fix.
A Call to Action for U.S. Retail Investors
Rare Earth Exchanges (REEx), launched in January 2025, was specifically designed for this moment—to educate and equip retail investors to defend America’s (and other free market democracies’) future by investing in domestic and allied rare earth resilience. While Congress delays and cable news distracts, investors must recognize what’s at stake.
Where’s the media? Podcasts?
Despite the escalating crisis surrounding China’s rare earth export restrictions, prominent media figures and platforms that significantly influenced Donald Trump’s political ascent have remained conspicuously silent. Notably, influential podcasters like Joe Rogan, whose platforms have previously swayed public opinion and political discourse, have yet to address the implications of China’s near-total control over these critical minerals.
This silence is particularly striking given the strategic importance of rare earth elements in national defense, technology, and energy sectors, and the potential vulnerabilities posed by over-reliance on Chinese supply chains. The lack of coverage from such influential voices underscores a broader media gap in informing the public about issues that have far-reaching economic and security implications for the United States.
Serious Stakes
This isn’t just about trade. This concerns whether the U.S. can continue to manufacture warships, aircraft, and semiconductors without Beijing’s permission.
Industrial policy must now go beyond mining. America needs comprehensive magnet manufacturing, alloy production, and advanced refining capacity, from end to end. Investors who understand the entire supply chain—and act accordingly—will help lead the reindustrialization of the United States.
Xi Jinping has just proven that rare earths are no longer a market issue—they are a geopolitical weapon, a point REEx has been reiterating since our launch. The question now is: Who’s going to rebuild America’s defense? Can Trump step forward and declare it’s time for an industrial policy? Will Mainstreet investors lead the charge over Wall Street?
Rare Earth Exchanges delivers real-time supply chain alerts, geopolitical intelligence, and actionable insights to empower U.S. retail investors focused on building resilience in their rare earth supply chains. To discuss today’s key news items, check out the REEx Forum.
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