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Not long ago, a top US official returned from a southern state brandishing a tiny sample of metal, declaring it was the initial rare-earth magnet produced in the US in 25 years.

The official stated that this was proof the US is ending “China’s chokehold on our supply chain.” Due to a new rare-earth mineral processing center in South Carolina, he noted, “America is reclaiming its self-sufficiency.”

Countering Beijing's Control in Critical Materials

Overthrowing China’s refining and production supremacy in these minerals, which are essential for some semiconductors, batteries, and armaments, is a top priority for the American leadership. Via tariffs and other approaches, the US is relying on bringing the industry back to domestic facilities.

These measures led China to limit rare-earth exports to the US and motivated US leaders to forge agreements with an ally, a partner, Cambodia, and Japan.

While the US and China have since reached a trade truce on rare earths, China—with approximately 70% of global mining and nearly all of international refining—holds an advantage that may prove challenging to overcome.

“Rare earths are used in EV engines but also in defense technology that have clear uses for the military,” says a market analyst. “Any device that has a decent magnet in it requires rare earths.”

Challenging Path for American Self-Sufficiency

It won't be simple for the US to reduce its reliance on imports from China of materials critical to defense, chip manufacturing, and the transition from traditional energy to wind and solar. Data from official sources, the US brought in 80% of the rare earths it used in recent years.

In the case of rare-earth minerals such as dysprosium, used in chip production, and another mineral, critical for defense systems, China's control over processing rises to almost total. These elements are found in magnets crucial to EV motors and power systems in renewable energy, along with applications for cellphones, advanced lighting, and nuclear reactors.

Extended Timelines and International Resources

Initiatives to cut the US’s reliance on Chinese production of rare-earth minerals could take years. Analysts point out that “These minerals” is somewhat of a misnomer because they’re not that uncommon in the planet's surface, but many reserves, such as those in Eastern Europe, where a deal was made earlier this year, are only in the initial phases of extraction.

“The issue isn't scarcity per se, it’s that China can control how much is exported,” an analyst said, adding that securing permits from China can be a complex and time-consuming endeavor.

The Arctic region, another focus of US attention, and Brazil, are additional nations with significant rare-earth resources. Domestically, there are reserves in the West, Wyoming, and the central US, with the biggest active site located at Mountain Pass, California, about 60 miles from a major city.

Government Initiatives and Investment

Recently, the Pentagon became the major investor in a mining company, with intentions to open a new “mine-to-magnet” plant, called 10X, to produce magnets crucial for F-35 fighter jets, unmanned systems, and submarines.

Across the continent, estimated reserves of rare earths were estimated to include 3.6m tons in the US and more than 14m tons in Canada—significantly lower than the 44m tons estimated to be in the Asian giant.

Mirroring government funding in other sectors and US chipmakers, the interior department said it was prepared to make targeted funding in strategic resource firms.

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

He suggested that the US could utilize a sovereign wealth fund to accelerate production. “How could the richest nation in the world not possess the biggest state investment fund?” he questioned.

Historical Obstacles and Future Outlook

US efforts to promote homegrown output have floundered in the past when Chinese producers lowered prices, rendering unsubsidized rare-earth development uneconomic against China’s lower cost of production and far-sighted planning.

In the past, an industry leader testified before a congressional panel that “those who invest in energy storage and supply chains today are likely to lead this industry for generations to come. It is not too late for the US but action is needed now.”

Since then, a race to assemble international partnerships around rare earths is speeding up.

“Soon, we’ll have so much essential resources that supply will exceed demand,” a top leader told reporters. This followed eight months after a demand for compensation in the form of natural resources from Ukraine. More recently, the authorities in Asia agreed to a deal with an American company, securing rights to minerals such as antimony and copper.

Can the US Succeed?

However, can the US make up its shortfall and weaken Beijing's grip on rare-earth supply chains? “America has implemented really significant steps so far,” an analyst says. The nation, he adds, cannot be “independent in the near future because it requires years to bring a mine online and build refining capacity.”