US Secures Rare Earths to Counter Chinese Export Controls

The United States is integrating critical minerals into its foreign policy to neutralize China's dominance over global supply chains. Following a 2025 wake-up call triggered by Chinese export restrictions on rare earths, the U.S. government has moved to secure minerals essential for fighter jets, drones, and consumer technology. To ensure mineral independence, the federal government became the largest shareholder in MP Materials Corp. and guaranteed minimum prices for its California mine.

Beyond domestic investment, the U.S. signed a memorandum of cooperation with Saudi Arabia to take a 49 percent ownership stake in a rare earths refinery. The administration is also forging mineral-based alliances with Australia, Pakistan, and Ukraine, while coordinating with G-7 partners to establish price floors. These efforts counter the Government of China, which processes between 40 and 90 percent of key minerals worldwide and prohibits sales to weapons producers.

Simultaneously, U.S. defense firms are outcompeting European rivals for stockpiles through superior financial firepower. While Germany's largest arms maker, Rheinmetall AG, conducts weekly stress tests to manage stocks, the European Union has responded with the Critical Raw Materials Act and the RESourceEU initiative. Germany is further exploring mining investments in Canada as part of a broader submarine deal. Despite these accelerations, experts suggest fully recovering U.S. processing capabilities could take a decade.