America’s dangerous pursuit of critical-mineral dominance
The Economist
February 26, 2026
AI-Generated Deep Dive Summary
The pursuit of critical-mineral dominance has become a focal point for American strategy as it seeks to counter China's growing influence over global natural resources. Similar to the 1973 oil embargo, which disrupted global energy markets and strained Western economies, there is a rising concern that China could leverage its control over rare-earth metals to achieve political or economic objectives, such as influencing decisions related to Taiwan. This has prompted the U.S. to intervene in commodity markets on an unprecedented scale, signaling a shift toward ensuring access to critical minerals essential for technology, defense, and clean energy industries.
The strategic importance of critical minerals lies in their role as building blocks for modern technologies, including semiconductors, electric vehicles, and renewable energy systems. China's dominance in rare-earth mining and processing gives it significant leverage over global supply chains. In 2023, China demonstrated this power by restricting exports of rare-earth metals, which are crucial for advanced manufacturing and defense systems. This move underscored the vulnerability of Western economies that rely heavily on Chinese supply, highlighting the need for diversified sourcing and increased domestic production in the U.S.
For businesses, the stakes are high. The race to secure critical minerals is not just about economic competition but also about national security and geopolitical stability. Companies reliant on these materials must navigate risks such as supply disruptions, trade tensions, and potential export restrictions. This has led many firms to reconsider their sourcing strategies, exploring alternative suppliers, investing in recycling technologies, and advocating for government policies that support mineral exploration and production within the U.S.
The broader economic implications of this shift are significant. While increased American investment in critical-mineral production could reduce reliance on China and enhance supply chain resilience, it also comes with challenges. Mining operations often face environmental concerns, regulatory hurdles, and community opposition. Balancing these factors while ensuring a steady flow of critical minerals will be crucial for maintaining economic growth and technological innovation.
Ultimately, the pursuit of critical-min
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Originally published on The Economist on 2/26/2026