# How the US lost control of rare earths to China

> America's dependence on Chinese processing of critical minerals has become a geopolitical weapon.
- Title: How the US lost control of rare earths to China · Ars Technica
- Summary: America's dependence on Chinese processing of critical minerals has become a geopolitical weapon. The US ceded control of rare earth processing to China for…
- Keywords: rare earth elements, china, united states, supply chain, geopolitical leverage, mountain pass mine, mp materials, export controls, defense technology, processing capacity, trade restrictions, semiconductor manufacturing
- Source: Ars Technica — https://arstechnica.com/reviews/2026/09/how-the-us-handed-china-control-of-the-rare-earth-supply-chain
- Published: 2026-09-23T13:37:05+00:00
- Read time: 2 min
- Topics: rare earth elements, china, united states, supply chain, geopolitical leverage, mountain pass mine, mp materials, export controls, defense technology, processing capacity, trade restrictions, semiconductor manufacturing
## Rare earths power everything
Magnets in your phone, cerium powder on screens, erbium in ocean cables, and rare earth compounds in car exhausts. These 17 metals are everywhere in modern technology.
## Processing is the real power
Rare earths aren't actually rare. The hard part is separating them from ore and each other. Whoever controls processing controls geopolitics.
## China dominates global processing
China processes about 91 percent of the world's rare earth separation and refining. The US military's F-35 jets and submarines depend on Chinese exports.
## America's mine went quiet
California's Mountain Pass mine led world production until the late 1980s. Radioactive wastewater spills made it unsustainable. The separation plant closed in 1998, the mine in 2002.
## The cost logic was simple
When China expanded mining and undercut prices, US companies switched suppliers. They got cheap materials without cleanup bills or bad press. They just gave up leverage.
## Rebuilding takes 15 years
The Government Accountability Office estimated in 2010 that rebuilding a domestic supply chain would take 15 years. Progress has been slow because China has the expertise and won't share.
## China banned the technology
Beijing banned exports of separation technology itself in December 2023. The US has rare earth deposits but few mines and little expertise to process them.
## US spending billions to rebuild
The US government committed over 7 billion dollars since April 2025 to rebuild capacity. The Pentagon bought 400 million dollars of stock in MP Materials, giving it 15 percent ownership.
## China weaponizes export controls
In October 2025, China announced export controls affecting even foreign factories using Chinese rare earths or technology. A German or Japanese factory needs a Chinese license if rare earths make up 0.1 percent of a product's value.
## Ford's supply went day to day
Ford had to idle its Chicago plant for a week in May 2025 because export controls blocked magnet shipments. CEO Jim Farley said his supply was day to day with no alternate source.

> day to day
## China targets US rare earth companies
On June 22, 2026, China put 10 US companies on its export control list, including MP Materials and USA Rare Earth. Neither Chinese nor foreign firms can sell them dual-use goods.
## November 10 is the deadline
China suspended export controls until November 10, 2026, after Trump met Xi Jinping. Both controls snap back automatically unless both governments extend the pause.
## Three paths forward
The US can keep relying on China (fast, cheap, risky), rebuild domestically (slow, expensive, radioactive waste), or build allied supply chains with Australia and Japan (lower risk, still affected by Chinese rules).
## Key takeaway

The US ceded control of rare earth processing to China for cost savings, and now faces a 15-year rebuild while China weaponizes supply restrictions.