The United States and Australia have joined forces to dismantle China’s chokehold on the global rare earth elements (REE) market—a calculated stranglehold that Beijing has wielded for years to exert undue influence over critical industries. With nearly 80% of the world’s REE supply under Chinese control, this monopolistic grip has enabled the regime to manipulate global supply chains and hold advanced technology industries hostage, from electric vehicles to defense systems.
Australia, a nation rich in rare earth deposits, is stepping up to confront China’s dominance head-on. The recent opening of the Kalgoorlie Rare Earths Processing Facility by Lynas Rare Earths Ltd., the largest non-Chinese rare earth producer, marks a bold step toward severing ties with Chinese processing facilities. Meanwhile, Australian billionaire Gina Rinehart’s Hancock Prospecting has made significant investments in both U.S.-based MP Materials and Lynas, signaling the private sector’s readiness to thwart China’s ambitions.
The U.S. government, recognizing the threat posed by China’s monopolistic tactics, is equally committed to the cause. USA Rare Earth, LLC has forged a long-term supply deal with Australian Strategic Materials Ltd., ensuring a steady flow of rare earth metals from a non-Chinese source. This partnership directly undercuts China’s leverage and empowers the U.S. to produce vital components like high-performance magnets without depending on Beijing. Moreover, the U.S. Export-Import Bank is backing this effort with offers of substantial debt funding for Australian rare earth and lithium projects, further undermining China’s grip on critical minerals.
This alliance sends a clear message: the days of China weaponizing its rare earth monopoly are numbered. By pooling resources and expertise, the U.S. and Australia are laying the groundwork for a resilient supply chain that will no longer be at the mercy of a regime known for economic coercion and geopolitical blackmail.
