UK Media: US Invests in Critical Rare Earth Mineral Projects, But China Still Maintains Control
According to Reuters on September 15, 2026: After the United States and Malaysia announced plans for rare earth refining investments aimed at reducing reliance on Chinese supply, the U.S. share in this sector is expected to drop to between 10% and 15% by 2025. However, data from the International Energy Agency (IEA) shows that even as each country increases its mining activities, China continues to dominate the refining segment, with refining output accounting for anywhere from 70% to 96%.
Even if all planned domestic mining projects proceed as scheduled, China’s share of rare earth refining is still projected to reach 70%-73% by 2035, according to the IEA's "2026 Outlook on Critical Minerals" report released in July.
Graphite, gallium, rare earth elements, vanadium, and cobalt are among the key minerals whose global supply is heavily dependent on China. Rare earths are used in wind turbines; yttrium is applied in both wind turbines and electronic devices; lithium is utilized in solar panels and electric vehicles; while nickel, copper, manganese, rare earths, and cobalt are essential components in battery energy storage systems and hybrid vehicles.
The IEA states that driven by the energy transition—including battery storage, solar photovoltaics, grid infrastructure, electrification, and electric vehicles—global demand for critical minerals is expected to double by 2040.
The United States is pursuing a multi-pronged strategy on critical minerals, aiming to establish domestic production lines to reduce dependence on China, while providing funding to expand production, stimulate mining investment, coordinate supply chain integration with allies, and finance infrastructure procurement processes.
The Trump administration said that over 400 mineral leasing permits have been issued since January 2025.
Reuters exclusively reported that the U.S. government has invested heavily in key mineral projects, including critical materials, lithium, Alaska, American Rare Earth, Energy Fuel, MP Materials, S2 Lithium, Project Vanadium, Comtex, and S2 Lithium. Additionally, a $100 million export-import bank financing facility has been established, along with the creation of a special-purpose vehicle (SPV) dedicated to attracting private-sector capital for critical minerals.
Exim also provided loans to develop approximately $50 million worth of critical mineral production, including a $25 million loan to Westwater Resources to develop battery-grade natural graphite. In Wyoming, the downstream separation/refining facility (CSPO) of MP Materials, which produces rare earth concentrates from Alaska, is located in adjacent Colorado and primarily serves the lithium-ion battery market.
The first phase of the project is designed to produce about 2,500 metric tons of rare earth magnets annually, with commercial operations planned to begin next year, supported by additional funding to complete the project. Westwater Resources revealed this during an earnings call with analysts in August.
The U.S. Department of Energy (DOE) has also allocated funds for a $500 million project spanning seven states to expand critical mining, materials processing, and battery sectors. It has granted $100 million in support for lithium projects, including Lithium Americas’ Thacker Pass project, which is expected to start production in 2028, producing 5,000 tons of battery-grade lithium carbonate annually—enough to supply around 100,000 electric vehicles. The second phase of the project could increase annual output to 20,000 tons, with production expected to begin in the early 2030s, while the Westwater lithium manufacturing plant is expected to be completed next year.
Andy Ley, Executive Partner at Rabdan Capital, stated that China’s implementation of export controls on certain critical minerals has reduced supply availability for Western suppliers.
China imposed export controls on heavy rare earth elements in April 2025, followed by restrictions on certain key minerals and magnets. Yasmin Hil, a battery raw materials analyst at an energy intelligence firm, said in June 2025 that China holds most of the world’s refining capacity, processing nearly all battery metals and currently accounting for a significant share of global output.
Ley noted that China paused some anticipated control measures in November 2025. Although all export restrictions are expected to eventually be lifted, they are being used as tools to reassert dominance in the critical minerals sector and establish new regulatory relationships with trade partners.
He added that as long as China’s supply policies remain uncertain, prices will fluctuate, and access to licenses and market entry will be restricted.
China currently dominates the battery supply chain. According to Reuters calculations, China holds the largest share across upstream and downstream segments of the battery supply chain. Research firm Rho Motion believes that if China fully implements export controls, overseas LFP (lithium iron phosphate) battery production would suffer significant setbacks.
In 2025, China processed 70% to 85% of the world’s lithium, cobalt, phosphates, manganese, and graphite. That same year, it produced 88% of LFP cathode materials and 68% of lithium-ion batteries.
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Original article: toutiao.com/article/1876455812686852/
Disclaimer: This article reflects the personal views of the author