China's rare earth dominance keeps the US in a strategic bind

The article highlights China’s strategic dominance in the rare earth supply chain, contrasting it with the United States’ focus on upstream mining and political maneuvering. While the US primarily extracts rare earth ores, China has developed a comprehensive, end-to-end supply chain encompassing efficient separation, purification, and downstream processing. This dominance did not arise overnight; it is the result of decades of technological innovation and strategic investment, particularly following breakthroughs in the 1970s that allowed China to move from exporting raw ores to producing high-purity rare earth elements at scale. A pivotal figure in this transformation was Xu Guangxian, who in 1972 introduced the “rare earth cascade extraction” method, significantly improving the efficiency and purity of rare earth separation. This innovation enabled China to industrialize rare earth refining without relying on expensive Western equipment, allowing it to surpass Japan and the US in practical refining capabilities. Subsequently, China aggressively lowered prices, outcompeting Western producers and becoming the primary global hub for rare earth processing.