Congress Turns Spotlight on Wyoming and Montana Rare Earths – But Can Innovation Outrun China’s Chokehold?

Highlights

• U.S. companies are developing innovative techniques to extract rare earth elements from coal waste and carbonatite deposits, challenging China's global monopoly.
• Key challenges include:
  • Workforce recruitment
  • Funding limitations
  • Lack of comprehensive industrial policy to support domestic rare earth element production
• Investments in Wyoming and Montana represent potential breakthrough moments for securing America's critical mineral supply chains.

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In another review of the recent U.S. House Small Business Committee hearing, lawmakers and industry leaders elevated Wyoming and Montana as critical battlegrounds in the race to liberate America’s rare earth supply chain from China’s grip. With just one domestic processing facility at Mountain Pass, California, the message was clear: America is dangerously behind—and it’s time to catch up.

From Coal Waste to Carbonatite Goldmines

As reported by David Madison at Cowboy State Daily (opens in a new tab), U.S. Critical Materials (opens in a new tab) and Rare Element Resources (opens in a new tab) (RER) revealed bold plans in collaboration with Idaho National Lab (opens in a new tab) (INL) to fast-track domestic production. Among the most explosive developments:

• New Tech from Trash: Revalia Chemical (opens in a new tab) is extracting rare earth elements (REEs) from coal waste and industrial byproducts, such as phosphogypsum. With an estimated 11 million metric tons of REEs in coal ash—five times more than all known U.S. reserves—this is not fringe science. It’s industrial alchemy if it can be commercially scalable of course.
• Montana’s Gallium and Samarium: Harvey Kaye of U.S. Critical Materials touted Sheep Creek’s (opens in a new tab) 9% REE concentrations—“the highest-grade ever found in America”—including gallium (vital for semiconductors and banned from Chinese export) and samarium (used in defense-grade magnets).
• Wyoming’s Quiet Giant: With over $170M invested and a $66M demo plant nearing operation, RER in Upton (opens in a new tab), WY, is aiming to beat China not just in output, but in environmental superiority using a thorium-free, membrane-based separation process.

Note that the topic of rare earth elements is often conflated with that of critical minerals, but they are distinct.  But both are vital in a revitalized U.S. industrial policy for a resilient future.

The Risks: Permitting Bottlenecks, STEM Workforce Shortages & No Industrial Policy

While industry leaders brought revolutionary science to the table, they also exposed the gaping policy holes:

• Talent Drought: RER’s Ken Mashinsky flagged a critical problem—how do you attract world-class engineers to a town of 800 in rural Wyoming? And remember, Rare Earth Exchanges raises the challenge of the need for trained talent for the entire value chain (upstream, midstream, and downstream).
• No Foothold Funding: Without tax credits, offtake guarantees, or DPA Title III support, these firms remain vulnerable to China’s time-tested playbook: market flooding and price warfare.
• One Lab Can’t Save Us All: INL's support is accelerating timelines, but scaling this nationally requires a system, not a single laboratory lifeline.

Rare Earth Exchanges™ Bias Meter™

Source	Bias Rating	Justification
Congressional Testimony	Optimistic but Incomplete	Emphasized tech breakthroughs and national security, but lacked full policy roadmap.
Industry Leaders	Balanced Urgency	Raised legitimate solutions and structural challenges with clarity and patriotism.
Cowboy State Daily Coverage	Pro-Innovation	Localized reporting embraced REE potential without overhyping policy readiness.

A Breakout Moment or Another Missed One?

This week’s hearing shows that America has a keen interest in developing the rocks and the science while tapping into and harnessing the will. What it lacks is the federal scaffolding and support for retail and capital markets to facilitate a vertically integrated, secure REE industry. From carbonatites to coal ash, the abundance of resources is real. But without stable market frameworks and targeted incentives, we risk watching China win Round Two.

Rare Earth Exchanges™ urges decisive federal action to lock in this moment—before America’s rare earth revival is outpaced and outsourced again. Want strategic insight to fuel the momentum? Reach out. We’re ready