America's Push to Break China's Rare Earth Grip

Investors Pour Millions into Startups

The U.S. is making significant strides to reduce its reliance on China for rare earth minerals, which are crucial for smartphones, electric cars, and military technology. China currently controls most of the global supply, posing risks to other countries' supply chains.

In 2025, investors injected over $628 million into U.S. startups focused on rare earth minerals, a substantial increase from the previous year. Even tech giants like Apple are sourcing rare earth products from U.S. manufacturers.

Government Support and Innovative Startups

The U.S. government is providing support to reduce the risk of investing in rare earth startups. This is beneficial for green tech companies that require these minerals for electric vehicles and defense technologies.

One notable startup, Phoenix Tailings, is recycling mining waste to produce rare earth minerals. They recently opened a new facility in New Hampshire, independent of Chinese resources. Despite producing less than China, they are already supplying products to customers.

Challenges and Optimism

However, there are challenges. High startup costs and lengthy permit processes pose hurdles. Additionally, the surge in investor interest raises concerns about market overheating.

Yet, optimism persists. The U.S. oil and gas industry's rapid growth from a small player to a global leader in just 15 years serves as a promising example. If that could happen, perhaps the rare earth industry can follow suit.