Story perspectives

U.S. Faces Rare Earth Crisis Amid China's Dominance

10/14/2025

Summary

Story summary

The United States faces concerns over reliance on China for rare earth elements used in technology and defense due to export controls.
China refines about 90% of rare earths, raising alarms for U.S. manufacturing and supply resilience.
Wharton School economist Jeremy Siegel criticizes the lack of a strategic reserve as a security oversight.
The United States is pursuing counter-strategies to boost domestic production and alliances despite regulatory hurdles.

History

Historical Context

In 2010, China imposed export restrictions on rare earth elements, controlling about 97% of global supply and causing prices to surge by over 300%. This followed a decade of increased production, where China's output rose by 77% to 129,000 tons by 2009. The U.S. responded by diversifying supply chains, highlighting ongoing concerns about reliance on China amid geopolitical tensions.

1 of 2

Story summary

The United States faces concerns over reliance on China for rare earth elements used in technology and defense due to export controls.
China refines about 90% of rare earths, raising alarms for U.S. manufacturing and supply resilience.
Wharton School economist Jeremy Siegel criticizes the lack of a strategic reserve as a security oversight.
The United States is pursuing counter-strategies to boost domestic production and alliances despite regulatory hurdles.

1 / 2