The US is recognizing China’s significant control over rare earth minerals, crucial for electronics, defense, and electric vehicles. US officials admit that America itself facilitated the transfer of technology to China to avoid the pollution associated with producing these minerals. This decision has led to heavy reliance on China for rare earths, with the US now facing strategic challenges.
China holds a substantial advantage in global manufacturing, accounting for 30% compared to the USA’s 17%. The US assistant defense secretary emphasized the urgent need to bridge manufacturing gaps and secure access to critical minerals. China’s dominance in critical minerals production has given it a competitive edge in manufacturing capabilities.
Despite China’s stronghold on rare earths, the US has partnered with Australia to develop a framework for mining and processing critical minerals. Other countries, like Canada, are also making strides in increasing production and refining critical minerals. Almonty Industries, based in Canada, is set to inaugurate a new processing plant in South Korea to reduce global tungsten dependence on China.
