OMAHA, Neb. (AP) — The sole U.S. rare earths mine is experiencing increased interest following China’s recent export restrictions on minerals crucial for military and high-tech applications. Matt Sloustcher of MP Materials, which operates the Mountain Pass mine in California, noted a surge in inquiries. The trade tensions between the U.S. and China could lead to a shortage of rare earth elements if China maintains or expands its export controls. While the California mine cannot meet all U.S. demands, efforts are underway to develop new mines. Rare earth elements are vital for electric vehicles, advanced fighter jets, smartphones, and more. Despite their name, these elements aren’t rare but are challenging to extract in commercially viable concentrations. MP Materials has halted sending its ore to China for processing due to tariffs and is working to expand its domestic processing capabilities. Experts suggest current stockpiles can sustain demand temporarily, but shortages may arise later this year. China dominates the rare earths market, producing significantly more than the U.S. and controlling most of the processing capacity. In response, the U.S. is pushing for new mines and reducing reliance on China. Two companies are exploring projects in Nebraska and Montana, hoping for federal support. Military technology also relies on rare earths, prompting an investigation into national security implications. Manufacturers anticipate price increases, with some battery makers potentially facing shortages within weeks. A new U.S. rare earths mine is years away from operation.
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