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The US government’s increasing intervention in the country’s rare earth sector is establishing a new economic framework that can lift the entire industry as it tries to build supply chains independent of China, a leading mining executive told Semafor on Wednesday.
The White House has taken stakes in several companies seen as critical to national security, including the largest US rare earth miner, and the Treasury secretary said Wednesday the administration is looking to exert control over more companies to counter China’s dominance in rare earths.
“The fact that the US government will get involved… that allows others to say, ‘Yeah, this is worthy of investment,’” USA Rare Earth CEO Barbara Humpton said at Semafor’s World Economy Summit.
Humpton, who declined to comment on whether her company is in talks with the Trump administration, said she is “thrilled the US government recognizes the issue,” and that it offers “a chance for the private sector to take a leadership role” in a new era of industrial policy some have likened to state capitalism.
Bolstering the US rare earth supply chain has taken on greater urgency in the last week as China unveiled new curbs on mineral exports, which threaten to hinder US manufacturing.
“We have a very fragile supply chain that relies on the whole country of China to be able to first mine the minerals that are needed, and then process them into metals, and get them into magnets that are absolutely vital to every aspect of our lives,” Humpton said. “Our job now… is to take this off of the geopolitical leverage game board.”
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The US’ rare earth spat with China and the White House’s subsequent push into the sector have led shares of mining companies, including Humpton’s, to soar.
But “despite what may be happening geopolitically, the sheer market economics are enough to make this a very attractive growth opportunity,” she said.
The auto industry is one example: While national security-related industries like aerospace and defense get the bulk of attention, car companies are the biggest users of permanent magnets, which allow motors to move, power electric batteries, and support other high-tech tools for drivers.
“We’re right on the opening chapters of the physical AI boom,” Humpton said.