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US Bets on Rare-Earth Independence
23 Aug
Summary
- China dominates rare-earth extraction and processing globally.
- MP Materials secured a significant deal with the Department of Defense.
- The Metals Company explores deep-sea mining for critical minerals.
The United States is prioritizing domestic rare-earth element production to reduce reliance on China, which currently controls a significant portion of global extraction and processing. MP Materials stands out with its Mountain Pass facility, the only large-scale rare-earth mining and processing site in North America. The company is also expanding its capacity to produce powerful magnets.
MP Materials benefits from a substantial agreement with the Department of Defense, which provides price protection for its neodymium-praseodymium (NdPr) output. This partnership generated $17.6 million in Q2 2026 alone. Additionally, MP Materials has established supply agreements with major companies like General Motors and Apple.
In contrast, The Metals Company (TMC) is focused on deep-sea mining, aiming to collect polymetallic nodules rich in nickel, copper, cobalt, and manganese from the Clarion Clipperton Zone in the Pacific. While this region shows immense resource potential, TMC faces the developmental challenges inherent in deep-sea operations.
