America Didn't Lose Its Rare Earth Industry. It Sold It
The U.S. faces challenges in rebuilding its rare earth supply chain due to Chinese export controls and a lack of alignment between private capital and national security needs. The authors argue that current market-based subsidies are insufficient to counter state-manipulated monopolies.
Why it matters
It addresses a critical vulnerability in the U.S. industrial base and the limitations of current economic policy regarding strategic minerals.
In October 2025, Beijing imposed sweeping controls on its rare earth exports. Since then, those controls have been suspended one short reprieve at a time , in the latest instance until Nov. 10 , with a broader trade truce through Jan. 10, 2027 . The reprieves have repeatedly come only after American concessions, demonstrating China's leverage in the export fight.
Yet China has constricted sales even during the truce, as buyers have few options but to take what they can get. In June, with the suspension in force, Beijing placed MP Materials and USA Rare Earth, the two companies the U.S. is counting on to build an alternative supply to China, on an export control list .
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