The Battle to Break China’s Rare Earth Supply Chain Dominance
December 30, 2024
As the world grows increasingly reliant on technology, the United States faces an urgent challenge: breaking China’s dominance in the rare earth supply chain. Rare earth elements (REEs)—critical components in electric vehicles (EVs), wind turbines, and defense technologies—are abundant in the Earth's crust but notoriously difficult to mine and process. For decades, China has controlled the majority of that supply chain, leaving the U.S. and other nations dependent on Beijing for these essential materials.
The Scale of China’s Rare Earth Dominance
In 2023, the United States had approximately 1.8 million metric tonnes of rare earth reserves and produced 43,000 metric tonnes that year—the second-highest output globally. In comparison, China mined 240,000 metric tonnes, making it the world’s largest producer, according to the U.S. Geological Survey. This production gap reflects a larger issue: while the U.S. has the raw materials, it lacks the infrastructure and capacity to process and refine rare earth elements on a large scale.
