Rare Earth Exchanges

The US’s Rare Earth Dependency on China: Can Trump’s Plans Make a Difference?

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Highlights

  • The United States remains critically dependent on China for rare earth minerals crucial to advanced technologies and national security.
  • Regulatory obstacles and local environmental opposition hinder domestic rare earth mining efforts.
  • Decoupling from the Chinese rare earth supply would require a significant investment of time and resources, as well as the removal of complex logistical barriers.

The United States has long been deeply reliant on China for rare earths, vital minerals essential for advanced technologies like electronics and weaponry. This dependency has become a strategic vulnerability, particularly as Beijing tightens export restrictions on these critical resources. President Donald Trump has set out to reduce this reliance by tapping into the US’s underutilized rare earth reserves.  But does the returning POTUS have the time, resources, or wherewithal, given all that is unfolding in America today?

While the US possesses significant rare earth deposits, regulatory hurdles and local opposition to mining projects have hindered their development. Analysts point to a broader societal trend, where stringent environmental regulations and a “not in my backyard” mindset have stalled basic industry projects, including rare earth mining, reports South China Morning Post (opens in a new tab).

As Jon Hykawy (opens in a new tab) of Stormcrow Capital notes, this dynamic reflects a cultural shift in the US that impedes industrial expansion.

Trump’s push to ramp up domestic production may face substantial challenges, including the need for expanded federal resources and staffing to navigate regulatory and logistical barriers. The effort underscores the difficulty of re-establishing a domestic supply chain for rare earths in a global market dominated by China, which currently processes 90% of the world’s rare earth supply. If successful, the initiative could bolster US economic and national security, but its feasibility hinges on overcoming entrenched regulatory and societal resistance.

Rare Earth Exchanges has suggested that decoupling from China would cost America big in terms of time, effort, talent, and money.   See Rare Earth Exchanges for even proposed high-level plans to move off Chinese rare earths.

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