The United States has invested billions to become independent from China in rare earth resources, and the project could last for decades

China‑USA: Competition for Rare Earth Minerals

1. Why this is so important – China controls a large share of the world’s supply chains for rare earth elements (REEs) and actively uses that control as a tool of geopolitical pressure on the United States and its allies.

- The United States is heavily dependent on REEs, especially for the production of high‑technology electronics, defense equipment, and energy systems.

2. U.S. Strategy: creating alternative supply chains
Step What they do Strategic reserve creation Under *Project Vault* a reserve of REEs worth $12 billion has been planned (of which $2 billion comes from the private sector). The goal is to provide a 45‑day stockpile. Investments in overseas mining and processing In the last six months the White House allocated $30 million to invest in private companies engaged in mining and processing of REEs. Agreements with partners around the world A forum was held in the United States that brought together representatives from more than 50 countries (Japan, South Korea, India). It discussed ways to bypass China in REE supplies. Purchases of foreign company shares U.S. funds bought 40 % of the shares of mining company Glencore in the Democratic Republic of Congo (the largest global player for cobalt, where Chinese companies own more than half of production). Guaranteed prices A plan is underway to set minimum purchase prices to encourage the private sector to open new deposits and build processing facilities.

3. Constraints and challenges
1. China remains a leader in processing

- In China 60 % of REEs (neodymium, praseodymium, dysprosium, terbium) are mined, and 90 % of them are processed there.
- China controls 94 % of the global market for permanent magnets based on REEs.

2. Time and cost of development

- Developing a single deposit takes an average of 16 years.
- Infrastructure investments (mining, processing) require large sums and long‑term planning.

3. Speed of China’s technological progress

- Experts predict that in about five years China will reach a level of development sufficient to lift export restrictions on REEs.
- Similarly, it will take roughly the same amount of time to create independent supply chains for the United States and its allies.

4. Need to review the reserve

- A 45‑day stockpile may prove insufficient due to rising raw material prices.
- Sustainable autonomy requires deeper integration of all stages of the chain – from mining to final processing.

4. Conclusion
The United States is taking targeted steps to reduce dependence on China in the field of rare earth minerals: strategic reserves are being created, overseas projects are being invested in, and international agreements are being signed. However, significant technological barriers, the long duration of deposit development, and China’s strong presence in processing make achieving full independence a lengthy process that requires coordination between public and private sectors over a decade-long horizon.