China’s embargo on exports of key rare earth minerals poses a serious threat to the U.S. economy, defense capabilities, and technological edge. We rely on imports for strategic defense minerals, and China has cornered the market, controlling around 70% of rare earth mining and over 90% of processing and magnet production, which are indispensable for everything from F-35 jets to electric vehicles. As China is America’s chief adversary, it is vital that we break our dependency. This is not merely a good option, but a matter of survival.
President Donald Trump’s pact with Australia on access to rare earth minerals is a positive first step. Partnership between the United States, the world’s second most prolific rare earth mineral producer, and Australia, the world’s fourth largest, puts a small but meaningful dent in China’s dominance. The two nations complement each other’s weaknesses in rare earth mineral mining and refining. Australia brings world-class, high-grade deposits and a permissive regulatory environment, and the U.S. brings deep pockets, cutting-edge technology, and massive demand, particularly in defense. The nations share a strategic vision as members of the Australia-United-Kingdom-U.S. security partnership and have a common enemy, China, on which their partnership focuses.
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The rare U.S.-Australia cooperation, while valuable, does not deliver true mineral independence. The U.S. must aggressively expand domestic capacity to mine and refine rare earth minerals, rapidly developing homegrown supply chains. Trump and former President Joe Biden have taken steps to do so, with the former issuing executive orders streamlining permitting to the greatest possible extent, and the latter working with Congress to create subsidies for processors. But these measures are not nearly enough.
To U.S. supplies of rare earth minerals, the federal government must demolish bureaucratic hurdles, unleash private innovation, expedite environmental reviews, and encourage a robust public-private partnership that would prompt American companies to invest in refining.
Burdensome permitting requirements under the National Environmental Policy Act often delay critical mineral mining projects by years or decades. Trump should work with Congress to repeal NEPA. If this can’t be done, rare earth minerals should be added to the list of projects immune from NEPA costs and delays. The Clean Air and Water acts already regulate new plants to ensure harmful pollutants are not released into the environment. NEPA is a purely procedural tool used to delay and block development.
The federal government should focus on states such as Texas, Oklahoma, Utah, Wyoming, and Montana, which have high-grade deposits, low regulatory hurdles, and low energy costs.
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China’s latest retaliatory strike at American security is potent and requires federal action to boost rare earth mineral mining and production. This should include streamlining permitting, investing heavily in domestic mining and refining infrastructure, and public-private partnerships to grow production, while continuing to leverage alliances with allies to counter China.
Achieving rare earth mineral independence is a matter of national urgency. China’s decision to embargo exports will cause short-term pain, but it presents an opportunity for the U.S. to build a sustainable and strong domestic supply chain, which ensures long-term security and economic health.