US rare earth dependence on China stems from decades of processing offshoring

September 23, 2026 at 06:37 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The United States ceded its rare earth processing edge to China through decades of cheaper imports and domestic mine closures. China now processes most of the world's rare earth minerals, giving it leverage over US military and consumer technology. The US still imported more than two-thirds of its rare earth elements as recently as 2025.

Key Facts

Mountain Pass mine in California led world rare earth production until the late 1980s.
Mountain Pass separation plant closed in 1998 and the mine stopped in 2002.
MP Materials restarted mining at Mountain Pass in 2017.
The US imported more than two-thirds of its rare earth elements as recently as 2025.
China issued rare earth export controls in 2025 and agreed to suspend them until Nov. 10, 2026.

Rise of Chinese Dominance

China expanded its own rare earth mining and sold processed materials at lower prices, making it easy for buyers to switch suppliers. The US shipped much of the rare earth minerals it mined overseas for processing for years. China now processes most of the rare earth minerals used worldwide. The US military's F-35 fighter jets and Virginia-class submarines depend on Chinese rare earth exports.

Mountain Pass Decline

Radioactive wastewater spills from the Mountain Pass mine into the Mojave Desert made it hard to keep domestic production running. The Mountain Pass separation plant closed in 1998, and the mine itself stopped in 2002. MP Materials restarted mining at Mountain Pass in 2017 as concern about access to rare earth minerals rose. Despite the restart, the US still imported more than two-thirds of the rare earth elements it used as recently as 2025.

Geopolitical Leverage

China showcased its rare earth leverage with a series of export controls issued in 2025. China agreed to suspend the export controls until at least Nov. 10, 2026. Controlling the supply enables a government to slow a rival's growth or halt it. China's ability to extend the suspension or let the controls go into effect gives it leverage on the geopolitical stage.