Patrick Boyle On Finance China’s Rare Earth Chokehold!
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Nov 3, 2025 Delve into China's grip on rare earth elements and how it shapes global politics. Discover why these materials are essential for tech, from electric vehicles to military systems. Explore the history of the Mountain Pass mine and the U.S. decline in production. Learn about China's strategic export licensing and its geopolitical leverage despite modest revenue. Hear about domestic and international responses to potential supply shocks, including recycling efforts and shifts in industrial policy. The truce between the U.S. and China may be temporary, but tensions linger.
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Rare Earths Power Modern Tech And Diplomacy
- Rare earths are critical across many industries from EVs to fiber optics and missile guidance.
- Their widespread use makes control of supply chains a powerful geopolitical lever.
Mountain Pass: From Spill To Strategic Asset
- The Mountain Pass mine once made the US dominant before a 2002 spill and economic pressures closed it.
- MP Materials later revived the site and the US took a 15% stake to rebuild domestic capacity.
China Built Refining Dominance, Not Just Mining
- China now supplies ~80% of rare earths and over 90% of refining, having invested where others wouldn't.
- That dominance owes as much to environmental tolerance and scale as to geology or profit margins.