With Donald Trump set to return to the White House on January 20, fears of a renewed trade war between the U.S. and China are intensifying, particularly over rare earth minerals—critical components in electronics, electric vehicles (EVs), and defense systems.
China dominates the global rare earth industry, controlling 70% of production and 90% of processing. These 17 elements, including neodymium, dysprosium, and terbium, are vital for manufacturing high-tech products such as semiconductors, fighter jets, wind turbines, and radar systems.
Amid escalating tensions, Beijing has already restricted exports of gallium, germanium, and antimony, following Washington’s tightening of chip export controls. Analysts warn that further retaliatory measures could target rare earths, potentially crippling supply chains worldwide.
The U.S. has made securing rare earth supplies a national priority, reopening the Mountain Pass Mine in California and investing heavily in domestic processing facilities. However, the country still depends on China for processing, with Beijing controlling 99% of the market for heavy rare earths.
Trump's return could further disrupt efforts to diversify rare earth supply chains. While he previously declared rare earths a national emergency, he has also opposed key funding initiatives like the Inflation Reduction Act, which supports critical mineral projects. Experts caution that any new trade restrictions or tariffs could exacerbate supply instability, impacting both industrial and military sectors.
As global players, including the EU, Australia, and Canada, rush to develop alternative supply chains, industry experts predict a turbulent period ahead. Any Chinese restrictions, though initially disruptive, could ultimately accelerate investment in non-Chinese rare earth production and processing—reshaping the global market for years to come.
Learn more about the newest rare earth supply, here: https://www.aljazeera.com/economy/2025/1/9/as-trump-talks-up-trade-war-with-china-fears-rise-for-rare-earths-supply
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