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Recently, a top US official came back from a southern state holding up a tiny sample of metal, announcing it was the initial rare-earth magnet produced in the US in decades.

He remarked that this was proof the US is breaking “China’s chokehold on our industrial pipeline.” Thanks to a new rare-earth mineral manufacturing plant in South Carolina, he added, “We’re finally becoming independent again.”

Challenging Beijing's Control in Critical Materials

Reducing China’s refining and production supremacy in these materials, which are crucial for advanced electronics, batteries, and armaments, is a key goal for the current US administration. Via trade measures and other approaches, the US is counting on bringing the industry back to American shores.

Such tariffs led China to restrict rare-earth shipments to the US and pushed the administration to sign deals with Australia, a partner, Cambodia, and a key Asian economy.

While the US and China have since brokered a temporary agreement on rare earths, China—with around the majority of worldwide extraction and over 90% of global processing capacity—holds an advantage that may prove challenging to overcome.

“These materials are used in electric motors but also in guidance systems that have clear uses for the defense department,” notes an industry expert. “Anything that has a decent magnet in it uses rare earths.”

Challenging Path for American Self-Sufficiency

There’s no easy fix for the US to reduce its reliance on Chinese production of materials essential to defense, chip manufacturing, and the transition from fossil fuels to wind and solar. Data from official sources, the US imported 80% of the rare earths it consumed in 2024.

For some rare-earth minerals such as a key element, used in semiconductors, and samarium, essential to military applications, China's control over processing reaches almost total. These elements are found in magnets crucial to electric engines and power systems in renewable energy, along with uses in cellphones, high-intensity lighting, and energy plants.

Long-Term Efforts and International Resources

Initiatives to reduce the US’s dependence on Chinese production of rare-earth minerals may require a long time. Experts note that “These minerals” is somewhat of a misnomer because they’re relatively abundant in the planet's surface, but many reserves, including those in Eastern Europe, where a deal was signed earlier this year, are only in the initial phases of extraction.

“The issue isn't scarcity itself, it’s that Beijing can limit how much is exported,” a specialist explained, adding that obtaining export licenses from China can be a lengthy, difficult process.

Greenland, another focus of American interest, and South America, are two other countries with significant rare-earth resources. In the continental US, there are deposits in California, the Midwest, and Missouri, with the largest operational mine located at a key location, California, about 60 miles from Las Vegas.

Federal Efforts and Funding

Recently, the US Department of Defense took on the role of the largest shareholder in a mining company, with intentions to open a new “integrated” plant, called a new facility, to make magnets essential for F-35 fighter jets, unmanned systems, and naval vessels.

In North America, measured and indicated resources of rare earths were estimated to include 3.6m tons in the US and additional millions in Canada—far less than the 44m tons estimated to be in the Asian giant.

Following direct investment in other sectors and domestic technology firms, the interior department announced it was prepared to make targeted funding in critical mineral companies.

“You’re competing against state capital because China is selecting these as priority areas that they want to invest in,” a cabinet member said during a speech in April.

The official floated that the US could utilize a national investment pool to accelerate production. “Why wouldn’t the richest nation in the world have the largest state investment fund?” he questioned.

Historical Obstacles and Future Outlook

American attempts to support domestic production have floundered in the past when Chinese producers cut costs, rendering unsupported rare-earth development unprofitable against Asia's competitive pricing and long-term strategic outlook.

In the past, a market expert stated before a congressional panel that “nations that fund in battery capacity and industrial networks now are poised to lead this sector for generations to come. It is not too late for the US but action is needed now.”

Five years on, a scramble to assemble trading alliances around rare earths is accelerating.

“Soon, we’ll have an abundance of essential resources that you won’t know what to do with them,” the President told reporters. That came in the wake of a request for compensation in the form of minerals from another country. In September, the government of Pakistan signed a contract with an US firm, securing rights to minerals such as key metals.

Can the US Succeed?

But, is America able to close its gap and loosen China’s hold on rare-earth global networks? “America has implemented really significant steps already,” an analyst comments. The nation, he continues, is unlikely to become “self-reliant in the near future because it takes time to start operations and establish processing plants.”