Critical minerals are finally getting the attention they deserve. This year, rare earth elements have dominated headlines, whether because of geopolitical tensions in Greenland and Ukraine or escalating trade disputes with China. They loomed large in U.S.-China trade talks this week, allowing China to drive a hard bargain.
The 17 rare earth elements (REEs) are indispensable. They exhibit unique electromagnetic properties that make numerous technologies function—think smartphones, electric vehicles, artificial intelligence, humanoid robotics, advanced defense systems, and more.
The Trump administration seems to understand this. Recent actions by President Donald Trump—including his executive order “Immediate Measures to Increase American Mineral Production” and his use of Section 232—have made clear America’s interest in rare earths. Indeed, long before this administration, bipartisan recognition of these minerals’ strategic value already existed, for national security and a vast array of advanced technologies.
China dominates in rare earth elements
As has been widely reported, China currently controls around 90% of global REE production. Its dominance is so strong that even some Western companies must send their rare earth materials to China for processing. Now, with Beijing imposing export controls on key elements and rare earths having been a central focus during this week’s U.S.-China trade talks, the challenge has been further amplified for America.
China’s grip is the result of decades of long-term investment, aggressive policy, and an economic playbook designed to corner the market. Processing rare earths is also notoriously dirty, which is something China has historically been less concerned about.
A 4-point fast-track program
If the U.S. is serious about building a resilient, domestic REE supply chain, it must act with urgency. Here’s how we can do it, and do it fast:
- Inject capital at scale
The U.S. must follow China’s lead by strategically funding and investing in rare earth producers and infrastructure. Rare earth development, particularly refining, requires significant capital, unless the asset is already advanced and leverages existing infrastructure. That is rarely the case in the U.S., and while both private and public companies are raising funds, significant federal support is essential to compete with China at scale. America’s late start means we must move faster and spend smarter. We can’t afford to wait.
- Establish price stability
Once U.S. producers are operational, price volatility becomes the next major hurdle. China can manipulate the global market by flooding it with underpriced material, undermining U.S. startups before they can gain traction. A temporary pricing floor or purchase guarantee for U.S.-sourced rare earths would help stabilize the market and protect domestic growth. The U.S. has implemented similar pricing strategies to support other foundational industries, including oil and agriculture. America’s emerging rare earth industry is critical and could benefit from these types of pricing initiatives.
- Streamline permitting
While the U.S. rightly values environmental protection and community impact, permitting delays are hampering progress. Responsible, low-impact projects are waiting in line, when they should be fast-tracked. We must retain environmental oversight but remove unnecessary bureaucratic barriers that stifle innovation and increase costs. China has little to no concern with environmental protection in regard to REEs, so removing these roadblocks in the short term will not only allow U.S. companies to get set up to compete, but will also be better for the environment in the long term, all while delivering significant value for American stakeholders.
- Create a centralized refining hub
The rare earth bottleneck isn’t mining—it’s refining. Processing capacity outside China is severely limited. The U.S. needs a centralized, government-backed refinery that serves multiple companies, enabling cost-effective and collaborative scaling. This shared facility would accelerate production, reduce risk, and mark a crucial step toward independence from China’s stranglehold. I believe this effort is the best path forward for Americans to unite and build the industrial infrastructure required to combat the big bully in the rare earth space.
The power of a public-private partnership
With government support and private-sector innovation, we can build a fully integrated rare earth supply chain. Doing so would neutralize one of China’s most powerful economic weapons and create a strategic advantage for the U.S. in critical industries. It’s also a smart investment in America’s long-term manufacturing future.
This isn’t just about minerals. It’s about national security, technological leadership, and economic resilience. The time to act and join forces is now.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
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