US Advances Rare Earth Magnet Supply Chain Against Chinese Dominance

The United States is striving to reduce its heavy dependence on China for rare earth elements and magnets, which are critical for electric vehicles, defense systems, and renewable energy technologies. Despite government investments exceeding $500 million and efforts to scale domestic production, China still controls about 85-90% of global rare earth processing capacity, with the U.S. possessing limited facilities such as the Energy Fuels' White Mesa Mill, the only commercial-scale rare earth oxide separation facility in the country. In 2025, the Trump administration announced a $1.4 billion partnership with Vulcan Elements and ReElement Technologies to build a rare-earth magnet supply chain domestically, aiming to produce 10,000 metric tons of magnets annually and enhance supply chain security. Recycling rare earth magnets is increasingly seen as a vital strategy to supplement domestic supply, but technical and economic challenges remain, with current recycling rates globally below 1%. Expanded Chinese export controls on critical rare earth elements have heightened the urgency for the U.S. to develop integrated mining, processing, separation, and recycling infrastructure to ensure a resilient and secure supply chain. Experts emphasize that recycling could fulfill a significant portion of U.S. rare earth needs if efficient recovery and remanufacturing capabilities are established domestically.