Foreign media: The U.S. aims to eliminate its reliance on critical minerals from China by January 2027, but in reality, the country’s domestic industrial capacity falls far short.
The Trump administration has mandated that the U.S. defense industry cease purchasing critical minerals such as rare earths, magnets, tungsten, molybdenum, and tantalum from China, Russia, Iran, and North Korea by January 1, 2027; however, domestic industries are far from ready.
In 2025, the U.S. is projected to require approximately 48,000 tons of rare earth magnets, yet domestic supply is only 300 tons, with expected capacity reaching 5,000 tons by year-end; the U.S. has not produced tungsten since 2015 and has not produced tantalum since 1959.
Despite President Trump signing an executive order in May to tighten exemptions, launching a $12 billion "Project Vault" strategic reserve initiative in February, and investing hundreds of billions of dollars to support around 150 mineral companies—along with building processing facilities and strategic stockpiles—the complexity of mineral processing technology and slow pace of project construction remain significant challenges. Moreover, China has long dominated over 80% of the global refined mineral market, meaning it will still take years for the U.S. to rebuild its supply chain. Industry leaders are urging defense contractors to sign contracts for domestic supply in advance, otherwise the sector will struggle to truly grow.
Original article: toutiao.com/article/1871925907241984/
Disclaimer: This article represents the personal views of the author.