Highlights
- China controls 90% of global rare earth element processing, critical for U.S. defense systems.
- The U.S. is actively developing domestic REE processing capabilities through strategic investments.
- The strategic minerals reserve requires a nuanced approach, prioritizing the most critical rare earth elements.
In their July 24 Center for Strategic & International Studies (CSIS) commentary (opens in a new tab), Major General Jake Kwon and Benjamin Jensen argue that a robust U.S. strategic reserve of rare earth elements (REEs) is essential to deter China and sustain defense production in future conflicts. They evoke Cold War stockpiling logic and draw compelling parallels to the Strategic Petroleum Reserve. The facts are largely sound—but the framing leans heavily on strategic fear, while glossing over current progress and industrial constraints.
What Checks Out
The authors correctly state that rare earths are critical to U.S. defense systems—from precision-guided munitions to stealth platforms—and that China controls about 90% of global REE processing. They also accurately reference historical U.S. stockpiling under the Strategic and Critical Materials Stockpiling Act and recent legislative action (Section 1411 of the 2024 NDAA) mandating REE independence from geopolitical rivals by 2035.
Where It Tilts
The piece casts the U.S. as dangerously exposed—ignoring steps already taken to onshore processing (e.g., MP Materials’ magnet plant, DoD’s Title III investments, Lynas USA’s Texas facility). These efforts aren’t hypothetical—they’re funded and under construction. Nor is the U.S. starting from zero: the National Defense Stockpile does hold some critical materials, though not in ideal quantities or configurations.
Not So Rare… Mislabels
The authors repeat a common trope: lumping REEs in with broader “critical minerals” like cobalt or lithium without a clear distinction. While REEs are critical, not all are equally strategic or scarce. Heavy REEs like dysprosium or terbium are far more at-risk than, say, lanthanum or cerium. Stockpiling without prioritization could waste taxpayer funds on non-bottleneck materials. CSIS missed an opportunity to educate policymakers on nuance.
Environmental Oversight: Light Touch
The piece nods to modern extraction technologies but minimizes domestic environmental and permitting challenges—key reasons the U.S. outsourced REE supply chains in the first place. Suggesting a reserve can be stood up “quickly” ignores the multi-year lead time required for safe, regulated domestic production.
Bottom Line: The call for a rare earth reserve is strategic common sense—but it’s already in motion, and urgency should not eclipse transparency or intelligent prioritization. Investors should monitor execution risk, not just patriotic momentum.
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