China dominates the rare earth elements industry, but this American company hopes to challenge China’s grip
China Dominates Rare Earth Elements, American Company Aims to Shift the Balance
China dominates the rare earth elements - A revised edition of this report, originally published on March 22, 2026, highlights the evolving dynamics in the rare earth elements sector. The original footage remains available for reference. In May, President Trump convened a summit in Beijing, engaging directly with Chinese leader Xi Jinping. Among the critical topics discussed was the strategic importance of rare earth elements, which underpin a vast array of technologies—from smartphones and electric vehicles to military hardware like fighter jets and radar systems.
China's near-complete control over these vital metals has raised concerns about global supply chain vulnerabilities. The country's dominance extends to materials that are indispensable for American military capabilities. However, this narrative shifts as we spotlight a U.S.-based enterprise striving to reduce reliance on Chinese imports. The company operates a multifaceted operation: it extracts, refines, and transforms rare earth elements into high-performance magnets, crucial for industries ranging from renewable energy to aerospace.
The company’s unique structure has drawn attention, as it is partially owned by American taxpayers. This arrangement, orchestrated by the federal government, reflects a broader effort to bolster domestic resources. Nestled an hour southwest of Las Vegas, the Mountain Pass mine in California serves as a pivotal symbol of this initiative. This site, located in the Mojave Desert, is the sole active rare earth mine in the United States, marking a critical front in the ongoing trade conflict with China.
From Finance to Mining: An Unlikely Transition
Jon Wertheim inquired about the mine’s operations, prompting Michael Rosenthal to confirm its significance. “We’re literally stepping on rare earths right now,” Rosenthal responded. The mine’s operations have become a focal point for the U.S. defense industry, which previously depended on China for critical components. James Litinsky, a co-founder, added, “This is such an important site. The idea that all the supply chain was overseas just hit us—someone had to step in.”
Both Rosenthal and Litinsky, finance professionals from Florida, found themselves navigating the complexities of geology and metallurgy. Their decision to enter the mining sector came as a response to the growing awareness of China’s strategic leverage over rare earths. The Trump administration, recognizing this risk, established the National Energy Dominance Council to ensure secure supply chains for essential minerals.
Strategic Leverage and Market Tactics
Secretary Doug Burgum emphasized the pervasiveness of rare earths in daily life, stating, “If you have a cellphone, a laptop, or drive a car, you’re interacting with rare earth minerals and magnets. These are essential for everything, from everyday use to aerospace and defense systems.” The military’s dependence on these materials is stark: a single F-35 jet incorporates approximately 100 pounds of rare earth elements.
Burgum also revealed how China manipulates the market. “They weaponize the supply by flooding the market with minerals when competitors emerge, driving prices down and threatening profitability.” This tactic has left U.S. companies, including those in defense, at the mercy of Chinese supply decisions.
Decoding Rare Earth Elements
“What makes rare earths special?” Wertheim asked, to which Julie Klinger, an environmental studies professor at the University of Wisconsin-Madison, replied, “Their unique magnetic, conductive, and optical properties make them indispensable.” She noted that these elements, numbering 17 in total, are not rare in abundance but rare in concentration and accessibility.
Klinger explained, “A small addition of a specific rare earth can enhance a magnet’s power while reducing its size. For instance, neodymium, discovered in the 1980s, revolutionized technology by enabling stronger, more compact magnets.” The history of rare earth mining in the U.S. dates back to 1949, when geologists first identified deposits at Mountain Pass. By the 1960s, these elements were being extracted and used in applications like early television color enhancement.
As the U.S. seeks to reclaim control, the battle for rare earth dominance continues. The Mojave mine stands as a testament to this effort, challenging China’s longstanding grip on a resource that shapes the modern world.