US boosts rare earth processing to counter China curbs

Washington's Strategy for Critical Minerals

The United States government is providing financial support to private companies for developing innovative rare earth processing methods, deliberately moving away from replicating established Chinese techniques. A senior US official conveyed to Asia Times that American refiners intend to achieve independence in critical minerals through their own technological advancements.

Audrey Robertson, Assistant Secretary of Energy at the Office of Critical Minerals and Energy Innovation, US Department of Energy (DOE), stated on October 15, 2026, at the Financial Times Metals & Mining Summit in London that the US needs to cultivate domestic manufacturing expertise.

She emphasised a heightened focus on new and inventive methods for critical mineral processing within the United States, acknowledging a historical gap where intellectual property development outpaced large-scale factory construction.

Beijing's Controls on Rare Earth Exports

China has progressively tightened its regulation over rare earth materials and associated expertise, prompting Washington's push for alternative processing. In December 2023, Beijing implemented a prohibition on the export of technologies for rare earth processing and magnet manufacturing.

More recently, in June this year, China halted supplies of certain dual-use components originating from the country to US producers, specifically MP Materials and USA Rare Earth.

Last month, new exit regulations were enacted, designed to prevent skilled technicians, including those with rare earth specialisation, from departing China, further restricting the flow of critical know-how.

US Government Investments in Domestic Capacity

The US has initiated several programmes to bolster its rare earth refining capabilities since last year. In August 2025, the Pentagon allocated US$10 million to NioCorp's Elk Creek project in Nebraska, which is projected to commence niobium mining operations in late 2029.

This project includes plans for an on-site facility to process niobium, scandium, and titanium, and has conducted trials for separating rare earths from its ore. Energy Secretary Chris Wright visited the Elk Creek site on October 14, 2026.

Earlier this year, the DOE established the Office of Critical Minerals and Energy Innovation to coordinate research across mining, processing, metallurgy, recycling, magnets, and semiconductors.

On June 2, 2026, this office committed US$134 million to the Colorado School of Mines and Phoenix Tailings for two demonstration facilities converting mining and industrial waste into rare earth metals.

Additionally, on August 7, 2026, the office launched the US$100 million Providing Opportunities for Specialized Education in Critical Technologies (PROSPECT) initiative to address workforce shortages by training students in the critical mineral sector, aiming to double graduates in mining and minerals within two years.

Challenges and Cost Implications

Despite the emphasis on innovation, some industry experts suggest that certain US projects might face substantial expenses when developing alternatives to China's traditional extraction methods. Chinese companies have spent over two decades refining these conventional processes, creating a significant cost advantage that new entrants must overcome.

Audrey Robertson from the US DOE acknowledged the historical gap in manufacturing know-how within the US, stating on October 15, 2026, that while intellectual property is developed, large-scale factory construction has lagged. She reaffirmed the commitment to establishing domestic processing capabilities using new methodologies, despite the potential cost hurdles.

Implications for Asian Industrial Supply Chains

The US drive for self-reliance in rare earth processing and China's concurrent tightening of export controls could significantly reshape global supply chains, affecting Asian industries reliant on these materials.

Asian manufacturers, particularly those in electronics, automotive, and renewable energy sectors, may face altered sourcing landscapes, potentially leading to higher input costs or necessitating diversification of their supply networks.

For instance, Japanese and South Korean electronics producers, which depend on rare earths for components, may need to reassess their procurement strategies or invest in domestic processing capabilities to mitigate risks from these evolving trade dynamics.

Decision-makers in Asian economies should monitor the progression of US refining projects and China's export policy adjustments, particularly regarding any specific rare earth elements critical to their industrial output, as these developments will dictate future material availability and pricing.