Economic Policy

U.S. Government’s $1.6 Billion Bet on Rare Earths Reveals China Supply Crisis

By Economics Desk | January 26, 2026

The U.S. government’s massive investment in USA Rare Earth underscores a critical national security threat: America’s dangerous reliance on China for minerals vital to technology and defense.

America’s strategic independence is under siege—not from foreign armies, but from its own vulnerability to supply chain domination by China. The recent $1.6 billion minority stake investment by the U.S. Commerce Department in Oklahoma-based USA Rare Earth shines a harsh light on this reality. Despite years of warnings from industry experts and lawmakers, Washington still finds itself scrambling to loosen China’s chokehold on critical minerals essential for smartphones, electric vehicles, robotics, and vital military equipment. Why Is America Still Dependent on China for Its Future? China processes over 90% of the world’s rare earth elements—a strategic resource list that includes...

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