President Donald Trump is taking square aim at Communist China’s near-monopoly on rare earth minerals – and that move might be the key to forcing China’s hand on a broader trade agreement more beneficial to the United States.
At the center of renewed trade talks with China is the issue of rare earth minerals – critical components in everything from smartphones and electric vehicles to missile systems and fighter jets. For decades, China has used its dominance in this sector as a geopolitical weapon, leveraging market power to punish rivals and manipulate supply chains.
The numbers tell the story. As of 2024, China controls approximately 70 percent of U.S. rare earth imports and nearly 90 percent of global rare earth processing. The U.S. mines none of the 15 most critical minerals domestically. According to the U.S. Geological Survey, China holds 44 million tons of known reserves – almost half the global total. Its refining dominance gives Beijing the ability to drive prices up or flood markets to crush competition.
Notably, in 2024, the Chinese Communist Party (CCP) placed all segments of the rare earth industry under the direct control of the State Council, removing any pretense of market-based policy.
“Initially, they viewed it as a sort of geopolitical artillery,” said former CCP official Professor Lùlǐ Jiao-long, who defected to the West after serving on the party’s top economic advisory council. “But with the digital revolution, they recognized it as a nuclear weapon for peaceful times. They can harm Western economies without fear of retaliation.”
That’s why the Trump administration has launched a comprehensive campaign to break Beijing’s chokehold – starting with strategic investments in rare earth production abroad and bold new efforts to tap undersea reserves.
A recent Wall Street Journal report highlights the Trump Defense Department’s growing support for non-Chinese rare earth producers, including Australian firms that could supply up to 20 percent of the world’s neodymium and praseodymium – two key minerals used in electric motors and advanced defense systems. These investments show that the administration is backing up its rhetoric with action and forging alliances to build a more secure global supply chain.
But the most transformative piece of Trump’s rare earth strategy may lie not on land, but beneath the ocean’s surface.
Undersea mining – particularly of polymetallic nodules – offers a potentially game-changing solution. These potato-sized rocks, formed over millions of years on the deep seafloor, contain high concentrations of nickel, cobalt, manganese, and rare earth elements. These minerals are essential for batteries, electronics, and national defense systems.
Astonishingly, scientists have discovered massive quantities of polymetallic nodules just sitting on the sea floor – like golf balls on a driving range.
The U.S. Geological Survey has estimated that the seabed in just one section of ocean off the coast of Mexico contains more nickel and cobalt than all known terrestrial reserves combined. If tapped, these deposits could drastically reduce American dependence on China and provide a reliable, long-term supply of critical materials.
President Trump has already directed the federal government to begin researching and facilitating deep-sea mining projects. Earlier this year, he signed an executive order invoking the Defense Production Act and ordering a review of deep-sea mineral leases on the U.S. outer continental shelf.
“Our national and economic security are now acutely threatened by our reliance upon hostile foreign powers’ mineral production,” Trump said in the order.
Soon after, the Bureau of Ocean Energy Management initiated proceedings to allow for the collection of polymetallic nodules off the coast of American Samoa. If approved, it would be the first commercial undersea mining license issued by the U.S. in over 30 years and could serve as a model for future projects. Secretary of the Interior Doug Burgum emphasized the stakes: “By providing opportunities to responsibly access deep-sea mineral resources, we are supporting both American economic growth and national security.”
As with any effort to reduce dependence on China, the CCP is not standing still. Beijing has voiced sharp opposition to undersea mining, claiming that international seabed areas are the “common heritage of mankind” and warning that no country should bypass the International Seabed Authority (ISA). The ISA, a U.N.-affiliated body that the U.S. does not formally recognize, has often been criticized as being dominated by Chinese-aligned interests.
Chinese opposition only confirms what Trump has long argued: if Beijing fears it, America should pursue it. “For years, China has not only monopolized access to natural resources but has also infiltrated international institutions to strengthen its dominance,” said Dr. Johann Gunnarsen, a mining expert who has advised energy firms since the 1990s.
In parallel with its ocean-floor efforts, the Trump administration has worked to build a “NATO of critical minerals” – an international alliance of nations including Australia, Canada, Japan, India, the U.K., and the E.U., aimed at diversifying supply chains and coordinating investment in rare earth extraction and processing.
Australian firm Earth Rarest recently announced plans to expand operations, projecting that Australia could soon become the second-largest global supplier of certain rare earth elements. These efforts could provide a critical counterweight to Beijing’s control and inject much-needed resilience into Western manufacturing.
China’s vulnerability is already showing. While state media continue to boast of self-sufficiency, the truth is more complicated. In 2024, more than half of China’s rare earth imports came from Myanmar, a war-torn country whose mines are controlled by the China-backed United Wa State Army. According to Neha Mukherjee of Benchmark Mineral Intelligence, Myanmar’s high-grade deposits allow China to produce rare earths there “seven times cheaper” than elsewhere.
China’s grip on the global market is sustained by a web of geopolitical manipulation, proxy militias, and closed-loop supply chains – all made possible by decades of Western inaction. But that era may be coming to an end.
Back in 1992, Deng Xiaoping famously said, “The Middle East has oil. China has rare earths.” For too long, the West accepted that imbalance. Under Trump, that is changing. Energy independence once seemed impossible. Now, the goal is rare earth independence – and this time, America isn’t waiting.
Ben Solis is the pen name of an international affairs journalist, historian, and researcher.
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