Could the U.S. Replace China As Global Supplier of Rare Earths?

The competition between the United States and China as global suppliers of rare earth elements (REE) is growing ever more intense. China currently dominates the global supply of REE, responsible for producing more than 90% of the world’s supply. This has caused the U.S. to look for alternative sources of REE in order to decrease its dependency on Chinese imports.

The U.S. has made significant investments in REE mining and processing operations. The U.S. Department of Energy has provided significant funding to companies such as MP Materials and Texas Mineral Resources Corp to support domestic REE production. The U.S. government has also passed legislation such as the National Defense Authorization Act that aims to support domestic REE production and reduce reliance on foreign imports.

These efforts by the U.S. government, combined with the increasing demand for REE due to their importance in modern technologies, have led to a surge in U.S. REE production. According to a report by the U.S. Geological Survey, U.S. REE production was estimated to have risen to 1,500 metric tons in 2017, up from just 105 metric tons in 2016.

However, despite these encouraging signs, it will be an uphill battle for the United States to surpass China as the world’s leading supplier of REE. This is due to the fact that China currently has a well-established REE mining and processing infrastructure that is well-developed and cost-effective. Furthermore, China has a large and growing domestic demand for REE, which will continue to drive Chinese production and exports.

That being said, the U.S. could still develop a competitive REE industry that would be capable of meeting domestic and international demand. The key to doing this will be to focus on creating a cost-effective REE production infrastructure that can provide a reliable supply of REE at competitive prices. Additionally, the U.S. will need to continue to invest in the mining and processing of REE domestically in order to increase its production capabilities.

Overall, the competition between the U.S. and China as global suppliers of REE is likely to remain intense for the foreseeable future. While it may be difficult for the U.S. to overtake China as the top REE supplier, it is certainly possible for the U.S. to develop a competitive REE industry that can meet domestic and international demand.