🚨China's Rare Earth Export Controls Loom Over US Tech
US Military and Tech Giants Face Rare Earth Shortage
TL;DR
China's export controls on rare earth elements, critical for tech and military equipment, could disrupt US supply chains. The US is investing billions to rebuild its rare earth production but faces a 15-year timeline.
China's export controls on rare earth elements are set to resume in November 2026, threatening US supply chains for tech and military equipment. The US military's F-35 fighter jets and Virginia-class submarines rely on rare earths, making this a critical issue for national security. The US has committed over $7 billion to rebuild its rare earth production capacity, but rebuilding a domestic supply chain could take up to 15 years. China currently processes about 91% of the world's rare earth separation and refining, giving it significant political leverage.
Key Points
China processes about 91% of the world's rare earth separation and refining, giving it political leverage.
The US government has committed over $7 billion to rebuild US rare earth production capacity, with MP Materials receiving $400 million from the Pentagon.
MP Materials' Mountain Pass mine and processing facility in California restarted in 2017, with plans to begin testing equipment for a new magnet plant in 2028.
The US Geological Survey map shows potential for rare earth deposits in the US, but the country has shipped most of its rare earth minerals overseas for processing.
China's export controls affect what factories abroad can export, with Ford having to idle its Chicago assembly plant for a week in May 2025 due to export controls.
Why It Matters
If you're in the US military or tech industry, China's rare earth export controls could disrupt your supply chains. The US is investing billions to rebuild its rare earth production but faces a 15-year timeline. Automakers like Ford have already felt the impact, with export controls idling assembly lines.
Comments
Be the first to comment
Enjoyed this article?
Get it daily. 7am. Free. Reads in 5 minutes.
Join 3,488 builders reading daily.