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Global demand for magnetic rare earth elements (REEs), the backbone of electric vehicles, wind turbines, and military systems, is expected to triple by 2035. With this surge in demand, the geopolitical urgency to secure reliable REE supply chains has become paramount, Mining Zimbabwe can report.
By Rudairo Mapuranga
In a recent meeting with industry executives, U.S. President Donald Trump’s energy policy team reportedly outlined a strategic push to revive domestic REE mining and magnet production. The private discussion focused on developing financial incentives, speeding up permitting processes, and fostering public-private partnerships to reduce foreign dependency.
The U.S. currently lacks sufficient refining capacity and depends heavily on imports—a vulnerability that has drawn increasing attention. The move by the Trump administration signals an effort to break that dependency, especially as REEs become even more critical to clean energy and defence applications.
At the same time, companies like Vital Metals are positioning themselves to become major players in North America’s rare earth supply chain. A recent study suggests Vital Metals could become one of the largest REE producers outside Asia, offering a strategic alternative for Western industries looking to de-risk their sourcing.
However, China remains central to the rare earths ecosystem. While it might not have been mentioned in the U.S. meeting, its dominance looms large in the background. China refines around 90% of the world’s rare earths and supplies the majority of high-grade magnets globally. Even with rising output elsewhere, Beijing’s integrated grip—from mining to refining to manufacturing—remains unparalleled.
China continues to strengthen this hold through increased state oversight, export licensing, and technology upgrades.
Meanwhile, the U.S. is working to catch up, but challenges remain. Rare earth mining requires significant environmental controls and capital investment. Moreover, magnet production—where most of the value lies—is technologically complex and deeply entrenched in China.
If the U.S. hopes to respond meaningfully to the REE challenge, it must not only mine rare earths but also refine and manufacture them domestically. That includes building integrated industrial ecosystems—something China has done over the past two decades.
The bottom line: As global demand for magnetic REEs surges, the U.S. and its allies are being forced to accelerate plans or risk strategic vulnerabilities. The Trump team’s engagement with industry may signal renewed focus, but time and capital will be the true tests.
In this emerging race, whoever builds the full supply chain—from mine to magnet—will not only shape the future of green technology but also wield significant geopolitical influence.
