As relations between the United States and China deteriorate, one critical industry has emerged as a glaring vulnerability: rare-earth elements (REEs). China holds a commanding monopoly on the production and processing of these minerals, including cobalt, lithium, and nickel. In a recent escalation, China has restricted exports of gallium and germanium, vital materials for technologies ranging from semiconductors and missile systems to solar cells.
This dependence on a strategic competitor for essential resources poses a grave threat to the United States. However, amidst the challenge lies an opportunity. The good news is that the United States possesses abundant natural reserves of many REEs. The problem? Insufficient exploitation. Despite being a leader in REE mining and refining from the mid-1960s to the mid-1980s, stringent environmental regulations have rendered domestic production commercially unviable.
A Legacy of Environmental Concerns and Lost Leadership
Stringent environmental regulations, implemented in response to past concerns about toxic chemical leaks, crippled the REE industry in the United States. The Mountain Pass mine in California remains the sole active REE mine in the country.
Signs of Progress, But More Needed
The Biden administration has recognized the urgency of securing domestic REE supplies. The Department of Energy (DOE) has allocated funding for projects aimed at extracting and separating REEs from unconventional sources like mining waste and building facilities for domestic production. These are positive steps, but the scale of investment needs to be significantly ramped up to match the strategic importance of REE independence.
A Multipolar World Demands Domestic Solutions
China’s recent threats to weaponize its REE monopoly against the United States and its allies underscore the need for self-sufficiency. Expanding domestic REE projects is no longer just about economic prosperity; it’s about national security.
Learning from Our Partners: Environmental Solutions and Technological Advancements
The United States can leverage the expertise of its allies to overcome environmental hurdles and advance REE extraction and processing technologies. France, for instance, has made significant strides in developing environmentally friendly bacteria-based extraction methods. Germany’s mining technology prowess is evident in its companies securing REE deals from under Chinese noses. South Korea’s tax incentives and research support for the rare metals industry offer another valuable model.
Friend-Shoring is Not Enough: Building Domestic REE Independence
While collaborating with allies is crucial, relying solely on them for REEs is akin to playing with fire. The ultimate goal must be self-sufficiency. This means expanding operations at the Mountain Pass mine, opening new mines in states like Wyoming, and incentivizing companies like MP Materials to lead the charge.
Investing in the Future: Cleaner Extraction, Research, and Profitable Incentives
The time for action is now. Increased investment in cleaner extraction methods, research and development, and profitable incentive structures are essential for a flourishing domestic REE industry. By learning from its allies, implementing effective strategies, and taking decisive action, the United States can break free from China’s grip on these critical minerals and secure its future in a multipolar world.
This blog post highlights the urgent need for the United States to address its dependence on China for rare-earth elements. By sharing valuable insights and actionable steps, it aims to spark a conversation and inspire efforts towards achieving REE independence. Remember, a secure future for the United States hinges on not just economic prosperity but also strategic resource autonomy. Let’s work together to make it happen.
Please note that while friend-shoring may appear to be a viable short-term strategy, long-term self-sufficiency must be the ultimate goal. By combining domestic resource development with strategic partnerships, the United States can emerge victorious in the race for REE independence.