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China's Rare Earth Control Threatens U.S. Defense Sector

3/2/2026

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Summary

Story summary

China's dominance in rare earth elements poses risk to U.S. defense and semiconductor sectors, with shortages of yttrium and scandium.
A Reuters report notes U.S. yttrium imports fell from 333 to 17 tonnes after China eased export controls.
China controls 90% of global processing capacity, complicating U.S. diversification.
The United States is pursuing partnerships to reduce reliance on Chinese rare earths, but challenges persist.

History

Historical Context

In 2010, China imposed export restrictions on rare earth elements, controlling over 90% of global supply, which significantly impacted industries reliant on these materials. By 2012, the U.S., EU, and Japan challenged these restrictions at the WTO, leading to a ruling against China in 2014. This ongoing struggle highlights the U.S.'s efforts to diversify its rare earth supply chains, crucial for defense and technology sectors.

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Story summary

China's dominance in rare earth elements poses risk to U.S. defense and semiconductor sectors, with shortages of yttrium and scandium.
A Reuters report notes U.S. yttrium imports fell from 333 to 17 tonnes after China eased export controls.
China controls 90% of global processing capacity, complicating U.S. diversification.
The United States is pursuing partnerships to reduce reliance on Chinese rare earths, but challenges persist.

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