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US Pushes To Reduce Reliance On China's Rare Earth Magnets

Beijing's dominance of the sector and its use of export controls during the 2025 trade dispute prompted Washington to strengthen domestic production and diversify supplies.

U.S. faces new pressure to build weapons without China's rare-earth magnets. Pic via(@WashTimes)

The United States is stepping up efforts to reduce its dependence on China's rare earth magnets as global supply chains for the critical minerals continue to expand.

According to the report, Beijing's dominance of the sector and its use of export controls during the 2025 trade dispute prompted Washington to strengthen domestic production and diversify supplies.

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The report said Phoenix Tailings is expanding its rare earth processing capabilities with support from a $500 million Pentagon loan. The company plans to build a new processing facility within 14 to 18 months to produce critical materials needed by the defense and technology sectors.

According to the report, President Donald Trump signed an executive order on July 20 requiring defense contractors to source key minerals from the United States or allied countries, while limiting the Pentagon's ability to grant waivers.

New rare earth discoveries in countries including Brazil and Vietnam are also expected to broaden global supply, potentially reducing China's long-standing influence over the market.

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