The United States wants to build a forced supply chain of rare earth metals, these metals present in missiles sent to Iran or smartphones worldwide, in order to no longer depend on China, which is still essential for now.
It only takes a few grams of these elements for a television or laptop, but several hundred for a Tomahawk or Patriot missile.
The Payne Institute of the Colorado School of Mines estimates that several thousand missiles have been used by the United States against Iran since the start of the war in late February.
“The conflict in the Middle East highlights the essential minerals” for military operations “and possible supply chain vulnerabilities,” observes Manhaz Khan, vice president of the Silverado Policy Accelerator think tank.
“This could make it harder to replenish the American arsenal,” he warns.
Regardless, “rebuilding [US] stocks of ammunition and bringing them back to the desired level will take years,” warned the CSIS think tank at the end of April.
The most commonly used rare earths are neodymium and praseodymium. These are used in the production of so-called permanent magnets, about ten times more powerful than conventional magnets, used in electric vehicles, wind turbines, or smartphones.
Samarium, another one of these 17 metallic elements, is found in magnets used in the defense industry.
Under the guidance of Donald Trump during his first term, and then Joe Biden, the United States increased their share of global rare earth production from 3% to 13%, through subsidies and tax incentives.
Until 2025, there was only one significant mine in the United States, the Mountain Pass site in California, operated by MP Materials.
First in more than 70 years, Ramaco Resources opened the Brook Mine in Wyoming in July, but the site has yet to produce anything.
Other projects are in progress in Montana, Wyoming, or Nebraska.
The United States also relies on recycling, through newcomers like REEcycle or Phoenix Tailings, as well as MP Materials.
At the same time, the American government is looking beyond its borders and has recently facilitated the acquisition of the Brazilian producer Serra Verde by the startup USA Rare Earth, in which it took a 10% stake in January.
“Surpassing China”
But extraction is only the first step in a process that also includes refining and separation (to isolate different rare earth elements), before transformation.
It is through separation that China controls the sector, with still 91% of volumes in 2025, according to the International Energy Agency (IEA).
Chinese authorities restricted the export of several of the elements last year, before suspending the measure, establishing control of this resource as a geopolitical lever.
India, Japan, and France are also doubling efforts to loosen China’s grip on rare earths.
The subject is on the agenda for discussions between Donald Trump and Xi Jinping in China this week.
MP Materials, in which the US government has a stake of about 15%, is preparing to start the separation at Mountain Pass “imminently,” CEO James Litinsky said on Thursday.
In January, another American industrialist, Energy Fuels, also a uranium producer, took control of the Australian ASM and plans to build a site in the United States, which will also perform the separation.
USA Rare Earth has taken a stake (12.5%) in the French specialist Carester, with which it is developing this technique.
As for the last link in the chain, the young companies Vulcan Elements and eVAC Magnetics have been producing permanent magnets since last year, in anticipation of MP Materials joining soon.
“We don’t just sell magnets,” said Vulcan Elements CEO John Maslin to AFP. “We offer a secure supply chain, independent of China.”
“It will take time” before the competition “reaches a scale sufficient to significantly reduce the market shares of Chinese producers,” warns Roderick Eggert, professor at the Colorado School of Mines.
To cover multiple bases, the United States has signed agreements with several producing countries in recent months: Australia, Thailand, Rwanda, and the Democratic Republic of the Congo.
For John Maslin, the idea of complete US autonomy, from extraction to the commercialization of permanent magnets, is no longer far-fetched.
“But the industry will have to innovate and surpass China,” warns the leader, “not just copy what they’re doing.”
AFP
