U.S. Seeks More Rare Earth Mines Amid Increasing Trade War Pressures
The ongoing trade war between China and the United States of America has left the US in urgent need of rare earth mines, following China’s imposition of export controls on its rare earth minerals. Currently, the United States has only one rare earth mine, located in California, which is not capable of meeting the full domestic demand for these critical resources.
Rare earth elements are crucial for Making phones, Fighter jets, submarines, electric cars, and many other necessary products for civilian and military use.
In response to China’s recent export limitations and the imposition of a 125% tariff on U.S.-bound rare earth imports, MP Materials announced it will cease shipping its ore to China for processing.
The company, which revived operations at the once-dormant Mountain Pass mine in 2017, stated that it will now process nearly half of its output domestically. The remaining unprocessed material will be stockpiled as MP Materials accelerates plans to boost its in-house processing capabilities.
MP Materials stated to the media:
Selling our valuable critical minerals under 125% tariffs is neither commercially rational nor aligned with America’s national interests.
MP Materials
China dominates the global rare earth market, producing 270,000 metric tons last year far surpassing the 45,000 tons mined in the U.S. and controlling nearly 90% of global supply due to its vast processing capacity. On April 4, Beijing introduced new export restrictions on key rare earths and magnets, requiring special licenses. These measures have intensified concerns in the U.S., reinforcing calls from the Trump camp and industry leaders to expand domestic mining and reduce reliance on China.
Furthermore Trump has made aggressive attempts though largely unsuccessful to pressure Greenland and Ukraine into supplying more rare earth elements and other vital resources to the United States. In a renewed push last month, he signed an executive order directing federal agencies to fast-track the approval process for mining permits and to promote investment in domestic rare earth projects actively. Despite these efforts, tangible progress remains limited.