The Trump administration has made it a priority to close the gap between China and the US in the production of rare earth elements (REEs). China accounts for more than 90% of the global “processed rare earths and rare earth magnets,” according to a Reuters report. However, its dominance in the REE business could be about to change thanks to a recent discovery in Southeastern Alaska.
Becoming Rare Earth Elements Independent
The Bureau of Land Management defines REEs as “a group of 17 metals that cannot be separated in simpler substances by chemical means, which is why they appear together in the periodic table.” What makes rare earth elements so important? They create the strongest permanent magnets, which can maintain their magnetic forces indefinitely without requiring external electrical power.
When US President Donald Trump made his trip to Asia at the beginning of this month, he had a well-defined purpose: to secure commitments from allies and friends to serve as sources of rare earth elements. As Liberty Nation News explained, “From a national security perspective, the deal-making on critical minerals is the most significant since it creates a hedge against being held hostage to unreliable Chinese rare earth exports to the US.”
The fact is that REEs are present in nearly every weapon system and in most of the electronics we own, including smartphones, tablets, and computers. Motors in numerous household devices and in electric vehicles also have these elements.
Nailing down sources of REEs in Asia is good news; however, what could be even better news is that, recently, at least eight of the 17 critical rare metals have been found in Alaska. Geological survey data showed 70 or more rare-earth metal deposits throughout the Last Frontier. Graphite One Inc. announced and confirmed the latest and most noteworthy discovery of REEs at its Graphite Creek deposit in Nome, on the Seward Peninsula. The area has been identified as the largest known graphite deposit in the US. Fox News explained: “As of 2024, the US was at least 93% import-dependent on both rare earth elements and graphite itself, according to the International Energy Agency, and the Graphite Creek deposit has already been dubbed the largest such tranche in the US.”
Finding REEs in Alaska does not mean the critical metals will be immediately available. In a Fox News Special Report, Bret Baier interviewed Department of Energy Secretary Chris Wright and asked about a new rare earth mine that opened in Wyoming. Secretary Wright observed:
“Mines are big things. It’s on average 19 years from a discovery to a mine in the United States. We have to change that. China has used that leverage of their control of the supply chain for rare earth elements to hold it over our head to slow-deliver things that are key to our manufacturing process. We have an across the administration effort … We will not be in the position we are in today at the end of this administration.”
Currently, there is just one mine producing REEs, Mountain Pass in California, which is operated by MP Materials. During 2024, the Mountain Pass mine produced 45,000 tons of rare earth oxide (REO) from which specific REEs are refined. Because the US has not had cost-effective REE refining processes, historically (until April 2025, that is), the majority of Mountain Pass’s 45,000 tons of REO was sold and shipped to China for separation and refinement into rare earth oxides and metals. Then China turned around and sold the refined products to defense contractors and other US companies, including General Motors and Apple.
Again, from Reuters, “MP Materials, which owns the only US rare earths mine, said on Thursday it has stopped shipping the critical minerals to China for processing after Beijing boosted import tariffs to 125% in response to US levies, sending the company’s shares down nearly 5%.”
The Benefits of Trump’s Tariffs
So, the beneficial consequence of President Trump’s tariffs on China was that the only REE mining operation is now turning to US onshoring solutions and keeping REO separation and refining in the US. MP is building up its REO stockpile, rapidly expanding its separation facilities in California and its magnet production in Fort Worth, Texas, keeping the end-to-end process American. Additionally, early-stage development of new mining operations is underway at Bear Lodge in Northeast Wyoming, Halleck Creek in Southeast Wyoming, the Round Top mine in West Texas, Bokan-Dotson Ridge in Alaska, and the Elk Creek underground mine in Nebraska.
The Trump administration has demonstrated an understanding of the REE gap with China and is doing something about it. In the not-too-distant future, the US will be self-sufficient in REEs. The US simply cannot be held hostage to the whims of Beijing.
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The views expressed are those of the author and not of any other affiliate.
