Can America break China’s grip on critical minerals?
The Economist
February 26, 2026
AI-Generated Deep Dive Summary
The United States is attempting to challenge China’s dominant control over critical minerals, particularly rare earth elements, which are essential for advanced technologies and defense systems. In recent years, China has held a significant majority of the global supply chain for these minerals, from mining to processing, giving it substantial leverage in international markets. To counter this, the U.S. has introduced initiatives such as the Project Vault stockpile program and proposed the creation of a "minerals club" to diversify supply chains globally. However, experts question whether these efforts will be sufficient to break China’s grip on this critical sector.
The importance of critical minerals cannot be overstated. Rare earth elements, in particular, are vital for manufacturing technologies like semiconductors, electric vehicles, and renewable energy systems. China’s dominance in processing these materials has allowed it to control prices and restrict supply during trade disputes, creating significant challenges for other nations reliant on these resources. While the U.S. has started to take steps to reduce its reliance by stockpiling certain minerals and exploring new mining opportunities domestically and internationally, the process of building a competitive industry is time-consuming and complex.
One key challenge for the U.S. is the lack of domestic processing capacity for critical minerals. Even if new mines are developed in countries like Australia or Brazil, the infrastructure to process these materials into high-tech components remains limited outside of China. Additionally, environmental concerns and regulatory hurdles often slow down mining projects, further complicating efforts to increase supply. The proposed "minerals club" aims to address this by fostering cooperation among producing nations to ensure a stable and diversified supply chain.
For businesses and investors, the race for critical minerals represents both an opportunity and a risk. Companies
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Originally published on The Economist on 2/26/2026