Trump to Unveil $12 Billion Rare-Earths Stockpile to Counter China
US Export-Import Bank investment draws major automaker interest; aims to break Beijing dominance
The initiative has attracted interest from major American car companies, signaling industry support for reducing dependence on Chinese supply chains. Rare earth elements are essential for electric vehicle batteries, semiconductors, and defense systems.
China currently controls approximately 60% of global rare earth mining and 90% of processing capacity. This concentration has long worried national security officials who see supply chain vulnerability.
The stockpile would provide a buffer against supply disruptions and price manipulation, while incentivizing domestic mining and processing operations.
Analysis
Why This Matters
Rare earths aren't actually rare—but the processing infrastructure is. China built this advantage over decades. Catching up requires sustained investment.
Background
The US had significant rare earth capacity in the 1980s before cheaper Chinese production drove domestic operations out of business.
Key Perspectives
Defense hawks support reducing China dependence. Environmentalists worry about mining impacts. Industry wants guaranteed supply.
What to Watch
Timeline for building domestic processing capacity and China's response.