US Rare Earth Ambitions Face Uphill Battle Against Chinese Dominance

Despite efforts to reduce reliance on China for rare earth minerals, a new Texas processing plant, built by Australia`s Lynas Rare Earths Ltd. and backed by US government funding, is unlikely to significantly challenge China`s dominance in the market. China currently controls the majority of global rare earth production and refining. While national security concerns are driving investments in rare earth projects outside of China, a recent decline in prices is making these ventures less economically viable. This raises doubts about the ability of the US and its allies to create a competitive rare earth supply chain independent of China. The US Department of Defense remains optimistic, aiming to establish a self-sufficient supply chain for rare earth magnets by 2027. However, industry experts caution that China`s control over the supply chain persists despite these efforts.