Why rare-earth minerals are at center of US-China trade war
What's the story
Rare earth minerals, a group of 17 metallic elements including scandium, yttrium, and lanthanides, have become a major point of contention in the US-China trade war. Despite multiple negotiations over the past few months, China has been slow to deliver on its promises to the Trump administration regarding these crucial minerals. The country even tightened its controls earlier this month by massively expanding restrictions.
Dominance
China's dominance in rare earth production
China has long held a near-total monopoly on rare earth minerals, as part of its broader industrial policy. According to the International Energy Agency (IEA), the country accounts for 61% of the world's mined rare earth production and controls an astounding 92% of global output at the processing stage. This dominance has made China a key player in the supply chain for these essential materials.
Applications
Importance of rare earths to the US
Rare earth minerals are vital for a wide range of technologies, from smartphones to wind turbines, LED lights, and flat-screen TVs. They also play a crucial role in electric vehicle (EV) batteries, MRI machines, and cancer therapies. The US military relies heavily on these minerals for F-35 fighter jets, submarines, lasers, satellites, and Tomahawk missiles, among other things, according to a 2025 research note from CSIS.
Dependence
Dependence on China
The US has only one operational rare earth mine in California, and until recently, it sent whatever heavy rare earths it mined there to China for separation. This dependence was disrupted by the Trump administration's announcement of high tariffs on China in April. "China has shown a willingness to weaponize" America's reliance on it for rare earth separation, Gracelin Baskaran, director of Critical Minerals Security Program at CSIS, told CNN.
Trade tensions
What does it mean for the US?
China recently added five rare-earth elements, holmium, erbium, thulium, europium, and ytterbium, to its existing control list requiring export licenses. This brings the total number of restricted rare earths to 12. The move has been seen as a major escalation in Trump's trade war with China. Between 2020 and 2023, 70% of US imports of these compounds/metals came from China, according to a US Geological Survey report.