• U.S. Treasury Secretary Scott Bessent is spearheading a major push to break China's dominance in rare earth minerals, calling for an "all hands on deck" approach.
  • A new rare earth processing facility has opened in Sumter, South Carolina, marking the first significant domestic processing capacity in 25 years.
  • The administration is considering price controls and other market interventions to protect emerging U.S. producers from Chinese competition.

U.S. Treasury Secretary Scott Bessent is mobilizing an aggressive campaign to dismantle China's stranglehold on the global rare earth supply chain, declaring the effort critical to national security and economic resilience. The push gained tangible momentum this week with the opening of a rare earth processing center in Sumter, South Carolina—the first major facility of its kind to come online in the United States in a quarter-century.

"This is an all-hands-on-deck moment for American economic security," Bessent said during remarks at the facility's opening, according to people familiar with his comments. "We cannot allow strategic industries vital to our defense and technology sectors to remain vulnerable to foreign coercion."

The South Carolina facility, supported by companies including Energy Ventures Alliance (EVA), is designed to restore domestic capability to produce rare earth magnets—components essential for everything from electric vehicles and consumer electronics to advanced weapons systems. The operation is expected to create hundreds of jobs and lower long-term costs for U.S. manufacturers who have been entirely dependent on Chinese imports.

Behind the scenes, administration officials are crafting a broader industrial policy that could include controversial price floors for domestically produced rare earths. While intended to shield nascent U.S. operations from volatile global markets and Chinese price manipulation, the proposed controls have sparked debate within economic circles about potential market distortions. Critics argue such interventions could create inefficiencies, while supporters contend they're necessary to counter China's longstanding strategic subsidies.

Efforts to restructure America's rare earth dependency have repeatedly hit snags over the past two decades, as environmental regulations and cheaper Chinese production drove most U.S. facilities out of business. China now controls approximately 80% of global rare earth processing, a dominance that gives Beijing substantial leverage in trade negotiations and technology competition.

Without a viable domestic supply chain, U.S. defense contractors and technology firms would remain exposed to potential export restrictions, according to analysts. The new facility represents the most concrete step yet in a multi-pronged strategy that includes streamlined permitting processes and potential federal stakes in mining operations like MP Minerals.

Representatives for EVA did not immediately respond to requests for comment on the South Carolina facility's production timeline. However, people familiar with the matter said the company expects to begin supplying rare earth magnets to defense contractors within six months.

The administration's push aligns with similar moves by allies including Australia, Japan, and the European Union, all of which are developing their own rare earth strategies to reduce Chinese dependence. Whether these parallel efforts can collectively challenge China's market power remains uncertain, but the geopolitical implications are clear: the race for mineral security has become a central front in great power competition.

Correction: An earlier version of this article misstated the expected timeline for magnet production. The facility is expected to begin supplying magnets within six months, not three.