US seeks to reduce reliance on China with $100bn loans
The US can access up to $100 billion in loans into building its own supply chain for rare earth minerals; think the stuff that powers precision-guided munitions and other electronics.
The main goal? Rely less on China, which currently dominates this market.
While this could help rebuild American mining, processing, and manufacturing capacity, it's a huge challenge since China's grip is strong and private investors aren't always eager for such long-term bets.
China dominates rare earths processing
Right now, China controls over 90% of rare earth processing worldwide, making the US vulnerable if things get tense.
Earlier this year, China blacklisted some American companies in a clear warning shot.
To help attract private money into these risky projects, experts are floating "CoCo bonds," basically special investments that pay out when certain goals are met.
The hope is to build a more independent US supply chain that can handle whatever comes next.