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China's control over rare minerals is becoming a growing concern for American defense systems, according to a report released by the America First Policy Institute (AFPI). The report highlights how China has a majority control over rare earth minerals, which are crucial for American national security. These minerals, known as Rare Earth Elements (REEs), are essential for advanced technologies like magnets, batteries, and critical military equipment.
The AFPI report points out that REEs are scattered across the globe, making it difficult to locate economically viable deposits. As a result, the United States heavily relies on China for these materials, as China holds the ability to control the mining of REEs. China currently maintains 70% of global mining and 85% of refining capacity, giving them a significant advantage in this sector.
To address this issue, AFPI suggests implementing comprehensive permitting reform that would allow the United States to gain independence from China in terms of acquiring these critical materials. The report emphasizes that the Chinese Communist Party (CCP) poses a significant threat to American national security, utilizing its control over REEs to advance its political goals and foreign policy objectives.
China's dominance in the mineral trade is further strengthened through its Belt Road Initiative (BRI), which aims to create a global infrastructure network. By securing access to valuable natural resources and enhancing its supply chains and trade routes, China is further solidifying its control over these critical minerals. The BRI has significantly increased funding from $6.8 billion in 2022 to $10.5 billion in 2023, indicating China's commitment to expanding its influence in this area.
The recent unveiling of export restrictions on gallium and geranium by China's CCP further demonstrates their strategy of exploiting their dominance in the mineral trade to disrupt American supply chains. Under these new rules, local sellers are now required to obtain licenses for exports, disclose foreign buyers' information, and specify the minerals' intended use, effectively constraining the supply to the United States. This move highlights the urgency for the United States to reduce its dependency on China for these critical minerals and find alternative sources to ensure the security of its defense systems.
