See new posts How can the US Free Itself from China's Corner On The Rare Earth Market. Now We Get Over 80% of our Rare Earth Products From China. These Are Critical For Defense, Technology and Car Production. What Are US Options Thought for 49s The United States currently relies on China for approximately 70-77% of its rare earth element (REE) imports, based on data from 2020-2024, though net import reliance on foreign sources overall has improved to around 80% in 2024. cnn.com 4 This dependence poses risks to defense (e.g., magnets in fighter jets and missiles), technology (e.g., semiconductors and lasers), and automotive sectors (e.g., electric vehicle batteries and motors), especially amid escalating trade tensions and China's recent export restrictions on REEs and related products. csis.org 2 Reducing this reliance is feasible but requires long-term commitment, as building a full domestic supply chain could take 10-20 years due to high costs, environmental regulations, and technical challenges. econofact.org 1 Below, I outline key options, drawing from ongoing U.S. government initiatives, private sector efforts, and expert analyses as of 2025.1. Boost Domestic Production and ProcessingThe U.S. has significant untapped REE reserves (e.g., in California and Wyoming) but lacks refining capacity, with most ore currently sent to China for processing. econofact.org 1 Strategies focus on expanding mining, building refineries, and integrating the full supply chain. Strategy Description Examples/Initiatives Expand Mining Operations Increase extraction from domestic sites like Mountain Pass (California), the only active U.S. REE mine, which already supplies about 15% of global production. MP Materials has ramped up output and produced purified dysprosium oxide samples in early 2025. csis.org 1 Government executive orders in 2025 declared a national energy emergency to fast-track permitting and mineral production. econofact.org 2 Build Refining and Magnet Facilities Invest in separation, alloying, and magnet production to process raw ores domestically. Department of Energy's 2025 Notice of Funding Opportunity (NOFO) targets REE magnet supply chains with subsidies for refining processes. energy.gov Pentagon's July 2025 deal with MP Materials includes a $110/lb floor price for neodymium and dysprosium, plus 10-year output guarantees. csis.org 2 A frozen 2020 DoD-funded joint venture with Lynas Rare Earths and Blue Line aims for a Texas heavy REE separation plant by 2026. aspistrategist.org.au Government Subsidies and Incentives Use federal funding, tax breaks, and price controls to offset high capital and environmental costs. Defense Production Act invoked for subsidies; long-term support via Inflation Reduction Act extensions and 2025 energy policies. econofact.org 2 Private deals like Apple's $500M offtake agreement with MP Materials provide market stability. aspistrategist.org.au Challenges include regulatory hurdles (e.g., wastewater permits) and public health risks from mining, but these efforts could make the U.S. a price-setter in REE markets. econofact.org 1 2. Diversify Supply Chains Through International PartnershipsRather than full self-sufficiency, ally with friendly nations to create "friend-shored" networks, reducing China's 60-90% control over global refining. forbes.com Strategy Description Examples/Initiatives Bilateral Agreements Secure access to foreign reserves in exchange for aid or trade deals. Proposed critical minerals deal with Ukraine for its untapped REEs; brokered access to reserves in the Democratic Republic of Congo and Rwanda via peace deals. econofact.org 1 Partnerships with Kazakhstan (source of 17 critical minerals) and India for alternative manufacturing. forbes.com Multilateral Alliances Leverage groups like AUKUS for funding and tech sharing. 2023 AUKUS legislation makes Australian and UK firms eligible for U.S. DoD funding; Australia offered guaranteed REE access in exchange for tariff relief (rejected but ongoing talks). aspistrategist.org.au U.S. investments in Australian mines for minerals not available domestically. aspistrategist.org.au Strategic Investments Fund overseas mining with U.S. processing. Government talks for investments in global operations; focus on allies like Canada (with its vast reserves) for joint supply chains. discoveryalert.com.au 2 This approach de-risks vulnerabilities faster than domestic buildup alone, though it requires diplomatic maneuvering amid China's influence. forbes.com 3. Invest in Innovation and AlternativesLong-term resilience comes from reducing REE needs through tech advances. Recycling and Urban Mining: Develop programs to recover REEs from e-waste and end-of-life products, potentially supplying 20-40% of demand.forbes.comDoE initiatives fund recycling tech in 2025.energy.gov Substitutes and Efficiency: Research alternatives (e.g., non-REE magnets) and efficient designs; U.S. labs like those under DoE are advancing this.forbes.com 1 Strategic Reserves: Build stockpiles for defense needs, as part of broader trade policy.forbes.com 1 4. Implement Trade and Policy Measures Tariffs and Restrictions: Impose duties on Chinese imports to protect domestic producers; use Foreign Direct Product Rule (FDPR) to control tech exports involving U.S. components.econofact.org 3 Market Transparency: Reform global REE markets for better pricing and reduce dumping.forbes.com Downstream Integration: Align policies for industries like EVs and semiconductors to prioritize secure sources.forbes.com Overall, these options form a "grand strategy" prioritizing critical minerals security, with 2025 marking accelerated action through public-private partnerships. forbes.com Success depends on sustained bipartisan support, as short-term disruptions from China's restrictions (e.g., on military-use exports) underscore the urgency. cnbc.com 1