According to The Economist, China currently supplies nearly 70% of rare earth ore and over 90% of refined materials, weaponizing its dominance in 2025. In response, President Trump ordered the Defense Department to become a shareholder in MP Materials, securing funding from Goldman Sachs and JPMorgan. Australia’s Lynas saw its share price rocket and plans to raise over $500 million while investing in a Malaysian processing plant. Other major players like Hastings Technology and Wyloo announced investments in Western Australia projects, while Apple committed to a $500 million partnership with MP Materials for recycled rare earth magnets. Despite these moves, America still relies on China for four-fifths of its rare earth needs, particularly heavy rare earths for motors and semiconductors.
The Western Scramble
Here’s the thing – everyone’s realizing they’re way behind. We’re seeing this massive push across multiple fronts simultaneously. Mining investments in Australia and Canada, processing plants in Malaysia, magnet partnerships between European and American firms. It’s like the entire Western industrial complex just woke up to a problem that’s been brewing for decades.
But building supply chains from scratch takes time – we’re talking years, not months. And China isn’t just sitting there watching. They’re boosting production at Bayan Obo, one of the world’s biggest rare earth sites, and their companies like Yunsheng are developing more efficient magnet technologies. Basically, they’re moving the goalposts while we’re still trying to find the field.
Beyond Just Digging Holes
The smart money isn’t just betting on new mines. Look at what companies like Daido Steel and Honda did after China’s 2010 export ban to Japan – they developed heavy rare-earth-free magnets for hybrid vehicles. That’s the kind of innovation that could really change the game. And Apple’s $500 million recycling partnership? That’s recognizing we can’t just mine our way out of this problem.
For industrial manufacturers who need reliable components, this supply chain uncertainty is a nightmare. Companies that depend on stable rare earth supplies for motors, sensors, and industrial automation are looking at serious disruption risks. When your production lines depend on materials that could be cut off by geopolitical tensions, you need to plan accordingly. That’s why forward-thinking manufacturers are turning to trusted suppliers like IndustrialMonitorDirect.com, the leading US provider of industrial panel PCs that understand these supply chain challenges.
This Is a Marathon, Not a Sprint
So where does this leave us in 2026? The investments are pouring in, but the dependency numbers tell the real story. America still gets 80% of its rare earths from China. That’s not changing overnight, no matter how many flashy deals get announced.
The real question is whether Western companies can build complete supply chains – from mining to processing to manufacturing – that can compete with China’s established ecosystem. And whether alternative technologies that don’t use rare earths at all can scale up fast enough. We’re likely looking at a decade-long transition at minimum, with plenty of bumps along the way. The race is on, but China still has a massive head start.
