How Are Countries Combatting China's Dominance in Rare Earths?

China's firm grip on the rare earths market poses significant challenges for global industries, particularly in technology and automotive sectors. Controlling approximately 70% of production and 90% of magnet manufacturing, China’s restrictions have triggered urgency among manufacturers to diversify their supply chains.

Companies like Lynas and MP Materials are poised to benefit from these shifts. In response, the U.S. and Australia have forged a partnership aimed at fostering independent rare earth production, investing $2 billion to bolster their mining capabilities.

This initiative seeks to alleviate dependence on Chinese resources, although establishing a reliable supply chain may take decades. Countries worldwide are now actively exploring alternatives, reflecting a growing determination to counterbalance China's dominance in critical minerals.