China-US rare earth competition heats up

China extended its lead in the race to dominate the rare earth supply chain when it announced the discovery of a five million-tonne deposit of minerals last week. China produces 70% of the world’s rare earth elements, which power critical technologies like electric vehicle batteries and military weapons.

In a bid to protect national security, the US is funneling hundreds of millions of dollars into new mining plants, but due to a slump in mineral prices since 2022, it is nowhere near its goal of undercutting China’s control over the market, Bloomberg reported. Japan took years to cut its dependence on Chinese rare earth supplies, so patience is critical, the CEO of an Australian producer said: “We do have to recognize that we’re playing a 30-year catch-up game.”