US to produce rare-earth magnets to reduce dependence on China
The US recently sealed a $1.4 billion deal with Vulcan Elements and ReElement Technologies to boost production of rare-earth magnets—those tiny but crucial parts inside EVs, AI tech, and defense gear.
The goal? Rely less on China, which currently dominates this market.
Thanks to a big Defense Department loan, a new facility will soon churn out 10,000 metric tons of these magnets every year.
Why rare-earth magnets matter and what's at stake
Rare-earth magnets power everything from electric cars to advanced military systems—so having more made in the US is a big deal for tech security and jobs.
The agreement also brings in $50 million from the Commerce Department and $550 million from private investors.
Meanwhile, China has started easing up on export restrictions after talks with the US, but this move shows America wants more control over its own supply chain going forward.