As the trade tensions between China and the US intensify, China has imposed export controls on critical rare earth minerals and magnets, significantly impacting the US. These minerals are essential for high-tech products and defense technologies. China dominates the rare earths supply chain, accounting for about 61% of production and 92% of processing globally. The US relies heavily on China for these materials, with 70% of its imports coming from there between 2020 and 2023. This dependency leaves the US vulnerable in both defense and manufacturing sectors. Although the US has one operational rare earth mine, it lacks the capacity to process heavy rare earths and must send materials to China. President Trump has ordered investigations into diversifying supply chains and boosting domestic capabilities, but this will require substantial investment and time.
— new from BBC
