US Seeks to Break China's Grip on Rare Earth Market Amid National Security Concerns
The United States has been making significant moves in the rare earth sector recently. Driven by concerns over national security, economic competition, and a desire for resource independence, the U.S. government has taken a series of strategic actions to reduce its reliance on foreign, particularly Chinese, rare earth imports.
17 July 2025
The U.S. aims to rebuild its domestic rare earth supply chain. According to recent reports, the Pentagon has made financial investments in rare earth-related companies, and Apple has also invested in U.S. rare earth enterprises. Despite these efforts, experts suggest that rebuilding the U.S. rare earth supply chain will be a challenging task. Currently, the U.S. relies heavily on Chinese rare earths, which account for over 80% of its supply. China has previously used rare earths as a strategic leverage, leading to concerns over the impact of this reliance on U.S. national security.
The recent developments in the U.S. rare earth sector can be seen in key policies and events. These include Wyoming restarting its rare earth mine, Trump announcing a trade agreement with Indonesia to reduce reliance on Chinese rare earths, and the U.S. Department of Commerce launching a special operation to combat rare earth smuggling. Furthermore, the U.S. has made efforts to strengthen its domestic supply chain by signing contracts with companies such as MP Materials to invest in rare earth mining and processing.
This trend is not limited to the U.S. government. Private companies are also taking steps to reduce their reliance on Chinese rare earths. Apple's investment in U.S. rare earth enterprises is a prime example of this.
The U.S. actions in the rare earth sector have significant implications for the global rare earth market and supply chain. They aim to reduce the country's reliance on foreign imports and promote domestic production. However, rebuilding the U.S. rare earth supply chain will require significant investments and time. China's dominance in the global rare earth market will likely continue in the short term.
The recent developments in the U.S. rare earth sector demonstrate the country's growing concern over the strategic importance of rare earths. The U.S. is taking a proactive approach to ensure the security of its rare earth supply chain, including strengthening its domestic production and seeking alternative sources from its allies. These efforts reflect the U.S.'s desire to reduce its reliance on Chinese rare earths and promote its national security and economic interests.
