The US is deeply dependent on China’s rare earths. Can Trump change that?

For decades, the United States has relied on China to supply the vast majority of its rare earths – critical minerals needed to produce everything from high-end electronics to advanced weaponry.

Now, US President Donald Trump has come into office with the aim of breaking the US’ dependence on Chinese rare earths by tapping America’s own long-neglected reserves of the minerals.

Though the US relies on imports of rare earths, it does not lack its own mineral deposits. But for decades these resources have been left in the ground due to a combination of government regulation and local opposition to mining projects, industry analysts said.

“[It’s] owing to regulation, and to what economist Paul Krugman called the transition of the US from a ‘not in my backyard’ to a ‘Banana’ – build absolutely nothing anywhere near anyone – nation,” said Jon Hykawy, president of the Toronto-based industry advisory firm Stormcrow Capital.

“It’s not so much rare earth mining that is being suppressed; it’s practically any level of basic industry.”