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Not long ago, a top US official came back from a southern state displaying a tiny sample of metal, declaring it was the first rare-earth magnet produced in the US in a quarter of a century.

He indicated that this was evidence the US is breaking “China’s chokehold on our industrial pipeline.” Because of a new rare-earth mineral manufacturing plant in South Carolina, the official continued, “America is reclaiming its self-sufficiency.”

Countering China’s Dominance in Critical Materials

Reducing Beijing's refining and production supremacy in these materials, which are crucial for some semiconductors, batteries, and armaments, is a top priority for the federal government. Using economic tools and other approaches, the US is relying on bringing the industry back to domestic facilities.

These measures prompted Beijing to restrict rare-earth exports to the US and motivated US leaders to forge agreements with Australia, Malaysia, Cambodia, and a key Asian economy.

Although the US and China have since reached a trade truce on rare earths, China—with around the majority of worldwide extraction and nearly all of international refining—holds an advantage that will be difficult to overcome.

“These materials are essential for EV engines but also in defense technology that have clear uses for the military,” notes an industry expert. “Anything that has a strong magnet in it requires rare earths.”

No Easy Fix for American Self-Sufficiency

There’s no easy fix for the US to reduce its dependence on Chinese production of materials essential to national security, semiconductor production, and the transition from fossil fuels to wind and solar. According to federal reports, the US brought in 80% of the rare earths it used in recent years.

In the case of rare-earth minerals such as a key element, essential for chip production, and samarium, essential to military applications, China's control over processing reaches 99%. These elements are used in magnets essential for electric engines and generators in wind turbines, along with applications for mobile devices, high-intensity lighting, and energy plants.

Extended Timelines and Global Deposits

Efforts to cut the US’s dependence on Chinese production of rare-earth minerals could take years. Experts note that “Rare earths” is not entirely accurate because they’re not that uncommon in the planet's surface, but many deposits, including those in Eastern Europe, where an agreement was signed earlier this year, are only in the initial phases of extraction.

“It’s not that there’s a shortage itself, it’s that China can limit how much is sent abroad,” a specialist explained, adding that obtaining export licenses from China can be a lengthy, difficult process.

Greenland, another focus of American interest, and Brazil, are two other countries with significant rare-earth resources. In the continental US, there are reserves in the West, Wyoming, and Missouri, with the largest operational mine operating at Mountain Pass, the state, about 60 miles from Las Vegas.

Government Initiatives and Investment

Recently, the Pentagon took on the role of the largest shareholder in an industry operator, with intentions to open a new “mine-to-magnet” plant, named a new facility, to produce magnets essential for F-35 fighter jets, drones, and submarines.

Across the continent, measured and indicated resources of rare earths were calculated at 3.6m tons in the US and additional millions in the northern neighbor—far less than the vast reserves estimated to be in China.

Following direct investment in the steel industry and US chipmakers, the interior department said it was ready to make targeted funding in critical mineral companies.

“You’re competing against government-backed investment because Beijing is picking these as priority areas that they want to invest in,” a cabinet member stated during a address in April.

He suggested that the US could utilize a sovereign wealth fund to speed production. “How could the wealthiest country in the world not possess the biggest sovereign wealth fund?” he asked.

Past Challenges and Future Outlook

American attempts to promote domestic production have floundered in the past when Chinese producers cut costs, making unsupported rare-earth development uneconomic against China’s lower cost of production and far-sighted planning.

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

Five years on, a scramble to assemble international partnerships around rare earths is speeding up.

“Soon, we’ll have so much essential resources that supply will exceed demand,” the President informed the media. That came in the wake of a demand for compensation in the form of minerals from another country. In September, the government of Pakistan signed a deal with an American company, securing rights to minerals such as antimony and copper.

Can the US Succeed?

But, is America able to close its gap and loosen Beijing's grip on rare-earth global networks? “America has implemented really significant steps already,” an analyst says. The US, he adds, cannot be “independent in the near future because it takes time to start operations and build refining capacity.”