US Invests $12 Billion to Break China Rare-Earth Monopoly

Donald Trump announced a $12 billion investment to establish a critical minerals reserve as the United States seeks to diversify supply chains for rare-earth minerals. These materials are essential for communications infrastructure, electric vehicles, and advanced weaponry. The move comes as the Government of China maintains control over approximately 70% of global mining and 90% of processing, frequently utilizing export curbs during trade standoffs.

To accelerate domestic capabilities, the United States Department of Defense has become the largest investor in MP Minerals. The U.S. also launched a critical minerals coalition comprising 54 partners, including the European Commission and the United Kingdom.

Parallel efforts are underway in Europe, where the European Union is implementing the 2025 European Critical Raw Materials Act to lower import dependence by 2030. France currently hosts the largest processing facility for these minerals outside of China. Both the U.S. and China are now targeting Brazil, Greenland, and South Africa for new supplies, a pursuit that has raised ecological concerns.