Martin Capital founder and CEO Rod Martin discusses China's surprise renewal of trade hostilities, why that's a huge mistake, and how Trump (and the EU) will react.
Can the U.S. Break China’s Grip on Rare Earths: Can the U.S. Rebuild Its Supply Chain?
China’s control over rare earth elements (REEs) has long given it leverage over global technology and defense supply chains. Today, it accounts for more than 70% of global REE mining and close to 90% of refining capacity. These materials are critical for magnets in electric vehicles, wind turbines, and precision-guided weapons, and they remain the quiet foundation of the modern economy. Western nations, particularly the US, depend on China for separated oxides, metals, and finished magnets, despite holding significant rare earth reserves of their own. That dependency is increasingly viewed not as an economic inconvenience but as a strategic vulnerability.
The US already possesses the scientific expertise and mineral base to reverse this imbalance; what’s missing is industrial scale and political will. Mountain Pass in California produces REO concentrate today, and new US facilities in Louisiana, Texas, and Utah are being built to handle separation and magnet manufacturing. With focused federal policy, streamlined permitting, targeted subsidies, and long-term purchase guarantees, the US could meet over 50% of its own light rare earth demand within five years. Heavy rare earths will still require allied feedstock from Australia, Greenland, and Canada, but that network is forming as governments align around supply security.
China’s dominance in REE processing was not inevitable; it was built through decades of low-cost production and aggressive state support. The US and its allies now face a similar choice: accept continued dependence or treat rare earths as a strategic sector on par with energy and semiconductors. With coordinated investment, environmental pragmatism, and public-private cooperation, the US could rebuild a full “mine-to-magnet” chain in North America. That effort would not just diversify supply, it would secure the technological backbone of the next industrial era.
Environmental regulations were inconsiderate of the long-term damage caused by their overzealous approach. Now we find ourselves in this predicament, as China has paid no mind to any environmental restrictions in its climb to the top of the REO mountain.
Trump is moving quite expeditiously on this, but it does take time. We could easily supply 85% of the entire world rare earths. Yet no prior administration has taken this seriously, at the expanse of making America ludicrously, stupidly vulnerable.
Can the U.S. Break China’s Grip on Rare Earths: Can the U.S. Rebuild Its Supply Chain?
China’s control over rare earth elements (REEs) has long given it leverage over global technology and defense supply chains. Today, it accounts for more than 70% of global REE mining and close to 90% of refining capacity. These materials are critical for magnets in electric vehicles, wind turbines, and precision-guided weapons, and they remain the quiet foundation of the modern economy. Western nations, particularly the US, depend on China for separated oxides, metals, and finished magnets, despite holding significant rare earth reserves of their own. That dependency is increasingly viewed not as an economic inconvenience but as a strategic vulnerability.
The US already possesses the scientific expertise and mineral base to reverse this imbalance; what’s missing is industrial scale and political will. Mountain Pass in California produces REO concentrate today, and new US facilities in Louisiana, Texas, and Utah are being built to handle separation and magnet manufacturing. With focused federal policy, streamlined permitting, targeted subsidies, and long-term purchase guarantees, the US could meet over 50% of its own light rare earth demand within five years. Heavy rare earths will still require allied feedstock from Australia, Greenland, and Canada, but that network is forming as governments align around supply security.
China’s dominance in REE processing was not inevitable; it was built through decades of low-cost production and aggressive state support. The US and its allies now face a similar choice: accept continued dependence or treat rare earths as a strategic sector on par with energy and semiconductors. With coordinated investment, environmental pragmatism, and public-private cooperation, the US could rebuild a full “mine-to-magnet” chain in North America. That effort would not just diversify supply, it would secure the technological backbone of the next industrial era.
Environmental regulations were inconsiderate of the long-term damage caused by their overzealous approach. Now we find ourselves in this predicament, as China has paid no mind to any environmental restrictions in its climb to the top of the REO mountain.
Trump is moving quite expeditiously on this, but it does take time. We could easily supply 85% of the entire world rare earths. Yet no prior administration has taken this seriously, at the expanse of making America ludicrously, stupidly vulnerable.
The mind just boggles.