Trump faces setbacks in rare earths independence efforts as China tightens grip

The US wants to break free from China’s stranglehold on rare earth elements. China, predictably, has other plans. In June 2026, Beijing added at least 10 US companies to its export control list, including two of the most prominent players in America’s rare earth ambitions: MP Materials and USA Rare Earth. The move effectively cuts off these firms from importing the very materials they need to build the domestic supply chain Washington has been championing. The scale of the problem China controls roughly 70% of global rare earth mining. That number alone is daunting, but it understates the real leverage. Beijing’s dominance in processing, the stage where raw ore gets turned into usable materials for magnets, batteries, and defense systems, is even more pronounced, approaching near-total control. Rare earth elements aren’t exactly household names, but they’re in practically everything that matters. Permanent magnets made from neodymium and dysprosium power electric vehicle motors, wind turbines, fighter jet guidance systems, and the tiny vibration motors in your phone. The Trump administration has tried to counter this dependency with serious money. The Export-Import Bank has issued ...