Highlights
- China controls up to 99% of rare earth processing, giving them strategic leverage over critical technology and defense sectors.
- The U.S. remains vulnerable with limited domestic production and 'just-in-time' inventories, risking 3-6 month supply chain disruptions.
- Geopolitical tensions and export restrictions highlight rare earth elements as a new frontier of economic and national security competition.
Rare earth elements (REEs) have officially entered the mainstream. A June 2nd New York Post article (opens in a new tab) by Thomas Barrabi—long known more for tabloid drama than supply chain geopolitics—spotlighted China’s stranglehold over heavy rare earths as a central battleground in U.S.–China tariff negotiations. When REEs hit the front page of America’s most widely circulated tabloid, it's a clear signal: the public is waking up to a national vulnerability decades in the making.
American Leverage? Not with the Rare Earths
The article lays out a stark picture. Despite a 90-day trade truce, Beijing has throttled exports of seven heavy rare earth materials critical for everything from F-35 jets to smartphones. U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent both criticized China's failure to meet the agreed-upon export volumes. Former military officials and House Armed Services Committee members now warn openly that China “can shut this stuff down” if tensions over Taiwan or AI technology escalate.
While the Post piece simplifies some technical distinctions—failing, for example, to distinguish between ore production and downstream processing—it accurately captures the strategic leverage China holds by controlling up to 99% of processing capacity for certain rare earths. The article cites industry veteran Mark A. Smith of NioCorp, who correctly notes the disproportionate impact of Chinese restrictions on U.S. defense systems.
Other claims in the piece ring true: the U.S. remains years away from operational production in Greenland or Ukraine, and most firms operate on “just-in-time” inventories, leaving a 3-6 month margin before critical disruptions ripple across aerospace, energy, and automotive sectors.
Notably, the article acknowledges the Trump administration's aggressive pivot: Executive Order 14241 to fast-track domestic mining, a Section 232 investigation into Chinese magnet imports, and the creation of a National Critical Minerals Strategy. This is consistent with current federal priorities we track daily at Rare Earth Exchanges (REEx).
Gaps to Consider
Still, some gaps remain. The Post does not mention existing efforts by U.S.-allied processors in Canada, Australia, or Europe to create alternative supply chains. Nor does it explore China’s economic risks if it overplays its hand, losing trust as a global supplier. Yet these omissions don’t negate the article’s core message: Rare earths are no longer a niche concern. They’re national security frontlines.
As sentiment around REEs intensifies, expect Congress to act fast, and investors to follow. The mainstreaming of rare earth risk has begun. And now, thanks to the New York Post, even Sunday-morning coffee readers are catching up. REEx is the leading online hub for retail investors to gain a deeper understanding of the evolving world of the REE supply chain.
See Rare Earth Exchanges and the Forum (opens in a new tab).
Mines and mine expansion can be fast tracked, It is the downstream processing that can take the time, especially if your country no longer has any manufacturing capability. Once upon a time Australia had its own Heavy engineering at Fishermans Bend in Victoria, that disappeared in the 1970’s. Auto manufacturers had shut up shop by 2020. Now its not just the loss of the factories that hurts, it is the loss of the technical skills needed to keep them running ~ toolmakers, pattern makers, foundry workers etc, skills that take years to develop. In consequence, just about every bit of mechanical equipment needed for a RE refinery will now have to be imported ~ not a good outlook when there are several other Western countries planning to do exactly the same thing at the same time !