State of the World from NPR China's Stranglehold on Coveted Rare Earth Minerals
Jul 17, 2025
Discover the essential role rare earth minerals play in modern technology, from smartphones to electric vehicles. Delve into how China's rise to dominance reshaped the market, transitioning from U.S. control in the 1980s. Explore the environmental impact of unregulated mining and the economic repercussions of China's export practices. Learn about the complexities of a two-tier pricing system that has inadvertently fueled smuggling, and uncover how American companies are adapting to reduce dependency on Chinese resources.
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US Rare Earth Dominance
- The U.S. dominated rare earth mineral production at Mountain Pass mine in California until the 1980s.
- Mark Smith shared that at its peak, the mine produced 100% of the world's europium supply.
China Learned Rare Earth Mining
- Starting in the 1960s, Chinese executives visited the U.S. Mountain Pass mine to learn rare earth mining techniques.
- They replicated and expanded production in China despite initially using crude, polluting methods.
China's Quotas and Smuggling
- China imposed production and export quotas in the late 1990s to limit price wars and environmental damage.
- This created a two-tier pricing system with lower prices domestically and stimulated illegal rare earth smuggling.