From China To Greenland: How The US Is Securing Rare Earth Supply Chains | CNA Correspondent

Key Concepts

• Rare Earth Elements (REEs): A group of 17 metallic elements crucial for modern technologies, including EVs, smartphones, defense systems, and renewable energy. Despite the name, they are not particularly rare in the Earth’s crust, but difficult and environmentally costly to process.
• Geopolitical Significance: China’s dominance in REE refining and manufacturing has created a strategic vulnerability for the US and its allies, leading to a “race” for supply chain security.
• Processing Challenges: Separating individual REEs from ore is a complex, multi-step process involving harsh chemicals and potentially radioactive byproducts, contributing to environmental concerns.
• Insitu Leaching: A mining technique used in Malaysia, involving injecting chemical reagents into the soil to dissolve REEs, considered less environmentally damaging than traditional mining.
• Red Mud/Bauxite Residue: A byproduct of aluminum refining containing high concentrations of REEs, presenting a potential secondary source for the US.
• Strategic Importance of Magnet Production: The ability to produce rare earth permanent magnets is a critical component of supply chain control, as these magnets are essential for numerous applications.

The Race for Rare Earths: A Geopolitical and Technological Analysis

I. China’s Dominance and Historical Context

The video details how China strategically positioned itself as the world’s leading producer of rare earth elements (REEs). In 1992, Deng Xiaoping famously stated, “The Middle East has oil. China has rare earth,” outlining a national goal to control the REE market. This mission was carried forward by Wen Jiabao, who oversaw significant investment in state-owned mining firms and research & development. This investment encompassed original research, education, technology upgrades, access to bank credit, and state-guided industrial policy, all applied to the rare earth and magnet sector. However, this growth came at a significant environmental cost, exemplified by the 2012 news report showing a forest converted into a mine, resulting in 53 hectares of farmland becoming wasteland due to toxic wastewater discharge. The willingness to tolerate these long-term environmental consequences was a key factor in China’s competitive advantage.

II. The US Response and Supply Chain Vulnerabilities

The US began to seriously address its reliance on China for REEs in April 2025, coinciding with the escalation of the US-China trade dispute. The urgency stems from the critical role REEs play in key sectors: the booming AI data center construction, the military-industrial complex (with the F-35 fighter jet requiring over 400 kg of REEs), and the broader technology industry (a single smartphone uses up to 16 REEs). Experts, like those interviewed in the documentary, believe a complete weaning off of Chinese REEs is “not possible,” citing China’s massive capacity, particularly in rare earth permanent magnets, and the difficulty in replicating the breadth of product range and purity levels.

III. Global Efforts to Diversify Supply

Despite the challenges, countries worldwide are actively seeking to access REE deposits and establish processing capabilities. While REEs are not truly “rare” – deposits exist globally in countries like Brazil and India – China currently supplies nearly 70% of global output, with the US, Myanmar, and Australia trailing far behind. Malaysia is emerging as a key player, aiming to increase its rare earth output to 30,000 tons annually by 2030, potentially unlocking $6.5 billion for the economy and creating 25,000 jobs. However, industry experts caution that these targets are ambitious, noting that China took over four decades to build its current capacity.

IV. The Complexities of REE Processing

The documentary provides a detailed breakdown of the REE processing chain. It begins with mining (open pit or underground), followed by crushing the ore into a clay slurry, flotation (using bubbles to separate minerals), and creating a mixed concentrate (60-70% REE). The most challenging step is separating the individual elements, requiring solvents like ammonia, hydroic acids, and sulfates, some of which are toxic. Certain ores require additional steps to remove radioactive elements. Finally, the separated oxides or carbonates are refined into rare earth metals. For magnets, neodymium and praseodymium are combined with iron and boron, powdered, and then baked in a process called sintering. This process highlights the technical complexity and environmental hazards associated with REE production. Refining one ton of REEs can generate up to 2,000 tons of toxic waste.

V. Environmental and Social Impacts: The Case of Bayan Obo

The documentary highlights the severe environmental consequences of REE mining and processing, focusing on the Bayan Obo mining town in Inner Mongolia, China. Local officials warned in 2009 about radioactive chemical discharge into the environment. The vast tailings dam, covering 10 square kilometers, holds millions of tons of toxic sludge, with radioactive material seeping into soil and water, impacting ecosystems and human health. Studies have linked pollution to intellectual development disorders in children and health problems (tooth loss, hair loss) among farmers, with tests revealing high levels of cancerous radioactive material in soil and water.

VI. Alternative Sources and Innovative Approaches

The US is exploring alternative sources of REEs, including existing mine and mineral processing waste. Element USA in Texas is extracting REEs from red mud (bauxite residue), a byproduct of aluminum refining, which contains REEs at concentrations 30 times higher than found in the Earth’s crust. Researchers at the University of Texas at Austin have identified coal ash as another potential source, containing up to 11 million tons of REEs – nearly eight times the amount of domestic US reserves. Novon Magnetics, funded by the Department of Defense, is also recycling rare earth magnets from end-of-life products like MRI machines and electric vehicles.

VII. Geopolitical Implications and Future Outlook

The fight over REEs is a central front in the US-China rivalry. China has used its dominance as a negotiating tool, as demonstrated by export controls imposed during trade negotiations. The US is responding by forging partnerships with countries like Malaysia, Thailand, Cambodia, Japan, and Australia to develop mining and processing facilities. However, the US REE sector is decades behind China’s, lacking sufficient mining capacity, processing facilities, and magnet manufacturing capabilities. Experts emphasize that building a robust domestic supply chain will require significant investment, time, and collaboration between the public and private sectors. The International Energy Agency projects a sevenfold increase in REE demand by 2040, further intensifying the geopolitical competition.

Notable Quotes:

• Deng Xiaoping (1992): “The Middle East has oil. China has rare earth.” – Illustrates China’s strategic vision for REE dominance.
• Industry Expert: “Never. It's not possible [to wean off China]. China has built up a capacity…which is huge.” – Highlights the scale of China’s advantage.
• Graceland Basin: “We’re held hostage by China.” – Emphasizes the US’s vulnerability and the strategic importance of REEs.

Synthesis/Conclusion:

The documentary paints a complex picture of the global rare earth landscape. China’s decades-long investment and willingness to accept environmental costs have established its dominance. The US and its allies are now scrambling to diversify supply chains, but face significant technical, economic, and environmental challenges. Innovative approaches, such as extracting REEs from waste materials, offer potential solutions, but require substantial investment and long-term commitment. The race for rare earths is not merely an economic competition; it is a critical element of national security and a defining feature of the US-China rivalry in the 21st century.