Highlights

• U.S. rare earth production collapsed by 2002 due to globalization and outsourcing.
• China now controls over 90% of global magnet output.
• Markets alone cannot secure critical mineral supply chains, requiring bold public-private partnerships and long-term investment.
• Rebuilding industrial capacity demands coordinated industrial strategy and international cooperation beyond fragile trade deals.

In a starkly revealing article published June 11, the World Economic Forum (WEF) issued what amounts to a global indictment of Western complacency on rare earths (opens in a new tab). Titled “Rare earths revisited: why countries stop producing things they need, and then try to start again,” the piece recounts America’s once-dominant position in rare earth mining—now reduced to a fragile patchwork of partial recovery—and warns that rebuilding industrial capacity without planning and long-term investment is a fool’s errand.

The WEF names names: the U.S. once led the world in rare earths, from mining at Mountain Pass to magnet manufacturing in Indiana. Then came globalization, outsourcing, and environmental neglect. By 2002, America’s rare earth production had collapsed. The magnet plant shifted to China. The mine sat idle. And the supply chain disintegrated.

The message is not subtle: rare earths are not rare—what’s rare is the political will and industrial commitment to produce them responsibly and at scale.

Now, as the U.S. and China navigate a precarious trade détente, the WEF reminds us that America’s lone rare earth mine has only recently resumed full-spectrum processing. One firm has begun magnet manufacturing in Texas. But labor costs are high, permitting is slow, and China still controls over 90% of global magnet output.

Crucially, the article draws broader parallels to other failed industrial sectors—textiles in the UK, semiconductors in Japan, and autos in Australia—all of which were lost to offshoring under cost-first logic. Now, nations are scrambling to reshore strategic production under the pressure of geopolitical duress. But, as WEF warns, protectionism alone won’t work. What’s needed is a serious, coordinated industrial strategy.

Key Takeaway

The World Economic Forum (opens in a new tab), often criticized for its technocratic tone, is now openly acknowledging that markets alone cannot secure critical mineral supply chains. Rare earths must be seen not as a commodity, but as the linchpin of industrial sovereignty—and their production demands bold public-private partnerships, long-term investment, and international cooperation beyond fragile trade deals.