Organized Money America’s Rare Earth Problem
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Jul 8, 2025 Alex Jacquez, former Special Assistant to the President for Economic Development and now Chief of Policy and Advocacy at Groundwork Collaborative, dives into the critical issue of rare earth minerals. He discusses how trade tensions with China highlighted America's vulnerability in securing these essential resources. The conversation covers misconceptions surrounding their rarity, China's dominance, and the geopolitical ramifications for the U.S. Jacquez emphasizes recent policy shifts and the challenges faced in reviving domestic production, crucial for national security and clean energy.
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China's Rare Earth Leverage
- China used rare earth mineral supply as leverage during trade disputes with the U.S., causing production shutdowns.
- These minerals are crucial for electronics, autos, and defense, creating major vulnerabilities.
Rare Earths Are Not Truly Rare
- Rare earth minerals are not actually rare nor solely Earth-based; the technology to process them was invented in the U.S.
- China does not have unique processing secrets but dominates production due to other factors.
U.S. Lost Rare Earth Manufacturing
- The U.S. invented and led rare earth magnet production but offshored it due to financialization and lower costs abroad.
- By the 2000s, the entire rare earth supply chain left the U.S., ceding dominance to China.
