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Last week, a top US official came back from South Carolina holding up a tiny sample of metal, declaring it was the initial rare-earth magnet produced in the US in decades.

The official stated that this was evidence the US is ending “China’s chokehold on our industrial pipeline.” 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

Ending Beijing's processing and manufacturing dominance in these minerals, which are crucial for some semiconductors, energy storage, and military equipment, is a key goal for the American leadership. Through trade measures and other strategies, the US is counting on returning the industry home to American shores.

Such measures led China to limit rare-earth shipments to the US and motivated US leaders to forge agreements with Australia, Malaysia, another nation, and a key Asian economy.

Although the US and China have since reached a trade truce on rare earths, Beijing—with around 70% of worldwide extraction and nearly all of global processing capacity—has a head start that may prove challenging to diminish.

“Rare earths are essential for electric motors but also in guidance systems that have clear uses for the military,” says an industry expert. “Anything that has a strong magnet in it uses rare earths.”

No Easy Fix for US Independence

There’s no easy fix for the US to reset its reliance on imports from China of materials critical to national security, semiconductor production, and the transition from traditional energy to wind and solar. Data from federal reports, the US brought in the vast majority of the rare earths it used in 2024.

In the case of rare-earth minerals such as dysprosium, essential for chip production, and another mineral, critical for military applications, Chinese refinement dominance rises to 99%. Dysprosium and terbium are found in magnets crucial to electric engines and power systems in wind turbines, along with applications for cellphones, high-intensity 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 deposits, including those in Eastern Europe, where an agreement was signed recently, are only in the early stages of extraction.

“The issue isn't scarcity per se, it’s that Beijing can limit how much is exported,” an analyst explained, noting that obtaining permits from China can be a complex and time-consuming endeavor.

The Arctic region, another focus of US attention, and Brazil, are two other countries with significant rare-earth deposits. Domestically, there are reserves in the West, Wyoming, and the central US, with the largest operational mine operating at Mountain Pass, the state, about 60 miles from a major city.

Government Initiatives and Funding

Recently, the Pentagon became the major investor in an industry operator, with intentions to open a new “mine-to-magnet” plant, called a new facility, to produce magnets essential for F-35 fighter jets, drones, and submarines.

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

Following government funding in other sectors and US chipmakers, the federal agency said it was ready to make direct investments in strategic resource firms.

“The US is up against state capital because China is selecting these as priority areas that they aim to control,” a senior official said during a speech this spring.

The official floated that the US could utilize a national investment pool to accelerate production. “How could the wealthiest country in the world not possess the largest state investment fund?” he questioned.

Historical Obstacles and Future Outlook

US efforts to support domestic production have struggled in the past when China cut costs, making unsubsidized rare-earth development uneconomic against Asia's competitive pricing and long-term strategic outlook.

In the past, a market expert stated before a US Senate committee that “those who invest in battery capacity and industrial networks today are poised to dominate this sector for the foreseeable future. It is not too late for the US but action is needed now.”

Since then, a scramble to build trading alliances around rare earths is speeding up.

“In about a year from now, we’ll have so much essential resources that supply will exceed demand,” a top leader told reporters. That came in the wake of a demand for compensation in the form of minerals from Ukraine. In September, the authorities in Asia agreed to a contract with an US firm, giving it access to minerals such as antimony and copper.

Can the US Succeed?

However, is America able to close its shortfall and weaken China’s hold on rare-earth global networks? “The US has taken major measures so far,” a specialist says. The US, he adds, is unlikely to become “independent in the short term because it takes time to start operations and build refining capacity.”