Highlights
- The United States is pursuing a dual approach to secure critical raw materials by increasing domestic extraction and investing in resource recovery and recycling.
- China currently dominates rare earth element production, supplying 70% of global demand, while the US explores untapped domestic resources in coal ash landfills and recycling technologies.
- A robust circular economy approach could unlock $1.5 trillion in new revenue and create a more resilient industrial base by reducing dependence on foreign supply chains.
The National Interest (opens in a new tab), a publication rooted in the realist school of international studies, has long been a trusted voice in global affairs. Edited by Jacob Heilbrunn and published by the Center for the National Interest—a think tank originally established by President Richard Nixon—the magazine provides in-depth analysis of critical geopolitical and economic issues. As reported (opens in a new tab) on March 26 by this think tank, securing critical raw materials has become a key priority for the United States, given the increasing complexities of global supply chains and geopolitical tensions.
The Trump administration has been actively pursuing strategies to secure these essential materials, which include lithium, cobalt, and rare earth elements. These resources power everything from clean energy technologies to advanced defense systems. However, efforts to obtain them have stirred international concerns. Negotiations are ongoing for a joint mineral deal with Ukraine, a move that runs alongside ceasefire discussions with Russia, highlighting the intricate geopolitical stakes involved. Additionally, a renewed interest in securing resources from Greenland has sparked unease among European allies, signaling a growing urgency in the race for critical materials.
Instead of relying heavily on foreign sources—many of which are located in unstable regions—the United States could benefit from a dual approach. That is, increasing domestic extraction while investing in resource recovery and recycling. To this end, Trump issued an executive order titled Immediate Measures to Increase American Mineral Production also reviewed by Rare Earth Exchanges.
This directive invokes the Defense Production Act to accelerate domestic mining operations, reinforcing the strategic necessity of securing these materials. Yet, as the National Interest highlights as has Rare Earth Exchanges, simply ramping up mining is not a long-term solution. The permitting process remains arduous, and the economic and environmental costs are significant. A more forward-thinking approach would include fostering a circular economy that prioritizes recovery and reuse of critical materials.
Rare earth elements, for example, are currently sourced largely from China, which supplies approximately 70 percent of global demand. A study by the University of Texas estimates that the United States has nearly $8.4 billion of these materials in coal ash landfills. Tapping into these overlooked domestic resources could enhance supply chain security without entangling the country in foreign conflicts. Recycling components from retired wind turbines, batteries, and electronics presents another opportunity to reduce reliance on imports. But we must remember China also refines about 80%+ of the world’s rare earth elements.
Slowly, the U.S. and West have been waking up to this reality. Finally, momentum is building toward this shift, with states like Washington implementing new recycling mandates. By mid-2025, manufacturers in Washington will be required to offer free recycling for solar modules, a step toward embedding sustainability into industrial practices. However, as the National Interest points out, federal action is needed to create the infrastructure and incentives necessary to make large-scale recycling viable.
A robust domestic recycling industry would not only secure critical materials but also boost job creation and economic growth. A 2023 study estimated that embracing a circular economy could unlock up to $1.5 trillion in new revenue, particularly in sectors like electric vehicle production, construction, and consumer electronics. Furthermore, such an approach would insulate the U.S. industrial base from supply chain disruptions and diplomatic fallout.
Collaboration with allies will also be crucial. The European Union and the United Kingdom have taken steps to strengthen their own critical mineral strategies. The EU’s Critical Raw Materials Act, for instance, sets a target for at least 25 percent of its annual consumption of critical materials to come from recycled sources by 2030. Aligning U.S. policies with European initiatives could create a transparent, rules-based market for recycled inputs and foster innovation in secondary material use. A concern Rare Earth Exchanges has called out is an economic nationalist agenda, which could misalign with the urgent need for strong, trusting, and seamless externalized collaboratives, especially among the Five Eyes Alliance.
The National Interest article underscores that this is not merely a resource challenge but a strategic imperative—and we concur at Rare Earth Exchanges.
By reframing how critical raw materials are sourced—moving from extraction to stewardship—the United States can secure its industrial future while avoiding unnecessary geopolitical entanglements. This shift will require strong federal leadership, innovative policies, and a commitment to sustainable resource management. But if executed correctly, it could redefine the nation’s approach to economic security in the decades to come.
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