China's rare earth dominance to continue as US investment lags: analysts

South China Morning Post

3 days ago

China is expected to
maintain a strategic edge over the United States in the rare earth industry, thanks to Beijing's long-term investments in advanced mining and processing technologies.
In contrast, the US is paying the price for decades of underinvestment, obsolete policies and the absence of a coherent strategy, according to a report by the New York-based think tank Strategy Risks.
The warning came as Beijing increasingly leverages its dominance in the global rare earth supply chain – particularly during recent trade negotiations with the Trump administration.
The critical minerals became a
powerful bargaining chip for China to push back against Washington's tech restrictions, culminating in a deal in London last month that laid the groundwork for both sides to ease curbs.
Despite growing US efforts to close the gap, analysts at Strategy Risks said the country was still not doing enough to reduce its reliance on Chinese rare earth exports in the near and medium term.
'Although the US is addressing its vulnerabilities in this sector through initiatives intended to strengthen production and materials processing, America remains dependent on imported minerals from China, due to a comparative lack of raw mineral deposits and government investments,' they wrote in the report on Monday.