US Boosts Rare Earth Mining to Counter China's Dominance

• The Trump administration is investing $1.6 billion in USA Rare Earth, an Oklahoma-based miner, to reduce reliance on China for critical minerals.
• China currently processes over 90% of the world's critical minerals, which are vital for smartphones, EVs, and high-tech products.
• The investment includes $277 million in federal funding and a $1.3 billion loan, with the Commerce Department receiving stock and purchase rights.
• This move is part of a broader strategy to strengthen the US critical mineral industry, addressing national security concerns due to China's supply chain chokehold.
• Previous investments include $400 million in MP Materials and a $1.4 billion deal with Vulcan Elements and ReElement Technologies.

Why It Matters: The US is heavily investing in domestic rare earth mining to secure its supply chain and reduce dependence on China.