Mountain Pass, California — September 28, 2026 In the global race to secure reliable and sustainable supplies of rare earth elements, a group of 17 chemically similar elements critical for high-tech devices, the United States and other industrialized nations are making strides towards reducing dependency on Chinese supplies. According to figures from the United States Geological Survey (USGS), China accounted for approximately 70% of global rare earth mining production and 85% of refining capacity in 2023.
MP Materials, the operator of the Mountain Pass mine in California, is the only active rare earth mining and processing facility in the United States. The mine resumed operations in 2018 and produced approximately 15% of the world’s rare earth oxides in 2022, with plans to expand refining capacity to meet growing demand.
The U.S. Department of Defense has allocated over $350 million since 2020 to support domestic rare earth production under the Defense Production Act, including funding for MP Materials and Lynas Rare Earths, an Australian company that operates a processing plant in Malaysia and is constructing a new facility in Texas with expected completion by 2025. The European Union launched the European Raw Materials Alliance in 2020 to strengthen secure and sustainable access to critical raw materials, including rare earths.
The EU currently imports over 98% of its rare earth needs, primarily from China, and aims to develop refining capacity within Europe by 2030. Environmental concerns remain significant, as rare earth extraction often involves radioactive byproducts like thorium and uranium, requiring careful waste management.
The former rare earth processing site in Bukit Merah, Malaysia, underwent a costly cleanup in the 2000s after radiation contamination was discovered, highlighting the long-term ecological risks associated with inadequate regulation. Market analysts project that global demand for rare earth elements could double by 2030, driven by the transition to clean energy technologies, with neodymium and praseodymium — key for permanent magnets in electric vehicle motors and wind turbines — expected to see the highest growth in demand.
The International Energy Agency estimates that to meet net-zero emissions goals by 2050, the world will need up to seven times more rare earth minerals by 2040 than current production levels, intensifying pressure on nations to secure reliable and sustainable supplies.
