Breaking China’s Rare Earths Grip: The Case for More Domestic Mining

Breaking China’s Rare Earths Grip: The Case for More Domestic Mining

Escalating Chinese export bans on rare earth elements and other strategic minerals have brought minerals security to the forefront of American policy debates. With each new restriction, China tightens its grip on minerals vital to our military, technology and energy sectors, growing its leverage over U.S. national security and economic interests. The question is no longer if action is necessary, but rather, what actions can the United States take to safeguard its future in the face of mounting supply chain threats?

In recent months, China has doubled down on restricting exports. These bans are not just economic maneuvers – they are powerful geopolitical tactics. As China clamps down aggressively on rare earths, American industries face growing risks.

Key sectors like defense, manufacturing, advanced energy solutions and technology are some of the hardest hit by these export restrictions. Without the steady flow of these rare earths, the production of everything from F-35 fighter jets and electric vehicles (EVs) to smartphones and the data centers powering AI are at risk. When China limits supply, the repercussions are felt from auto assembly lines to defense contractors.

The only long-term answer to these threats is clear – the United States must ramp up domestic minerals mining and processing. Unlocking these resources would allow us to reduce the leverage adversarial nations hold over our supply chains and restore resilience to key sectors.

Supporting U.S. Mining

1. Increasing Investment: Traditionally, the private sector has taken the lead on investing in companies focused on mining efforts. However, as of late, the Trump administration has taken historic steps to strengthen the government’s commitment to domestic mineral resilience. Earlier this year, the federal government acquired a direct stake in Lithium Americas – a bold move that signals the federal government’s commitment to strengthening domestic minerals production. As additional government investments flow into projects nationwide, major private sector players like JPMorgan are following suit. When Washington and Wall Street lead with strategic investment, it sends a clear message: America is open for minerals business.
2. Permitting Reform: Executive actions taken by the Trump administration have begun to alleviate the bureaucratic obstacles that many mining companies face. While these actions signal that onshoring mineral production is a priority for the administration, Congressional action to simplify the permitting process would have a longer-lasting impact on our ability to break ground on new projects. Bipartisan permitting reform legislation such as the Mining Regulatory Clarity Act and SPEED Act can help set clear timelines, reduce duplicative reviews and provide the certainty needed to move responsible mining and processing projects from proposal to production.
3. Agency & Industry Coordination: Alignment efforts across federal agencies, like the Department of War, Department of Energy and Department of the Interior, in addition to stronger partnerships with state governments, tribal groups and the private sector, can help us move faster and more intentionally when it comes to mineral production.
4. Mining Workforce Development: Jobs in mining aren’t what they were 50 years ago. Through the advancement of different mining technologies, the industry has evolved to include a variety of different careers in mining including engineering, data analytics and environmental science. Adding value for local economies, a single mining job supports the creation of 2.5 jobs on average in the community surrounding the project.

Our supply chains are fragile, and as geopolitical tensions rise, we cannot afford to wait. American minerals independence is within reach. Together, we’re paving the way for a new era of minerals dominance – restoring the greatness of our nation’s mineral industry.