Rare Earth Minerals Explained: Why They Matter in the US-China Trade War

Rare earth minerals are crucial for technologies from smartphones and electric vehicles to advanced military systems.

While abundant in Earth’s crust, they require expensive and environmentally damaging extraction and processing.

China currently controls 61% of mining and 92% of processing capacity, giving it strategic leverage over the US, which has only one operational mine in California without refining capabilities.

Recently, US tariffs spurred China to restrict exports, exposing America’s vulnerability as 70% of rare earth imports came from China between 2020 and 2023.

To secure supply chains and national security, the US is pursuing new mineral sources in Greenland, Ukraine, and Saudi Arabia.