Rare Earths Are China’s Trump Card In The Trade War — How The U.S. Is Trying To Fix That

Video Description

Rare earths refer to 17 elements on the periodic table whose atomic structure gives them special magnetic properties. Rare earth magnets power everything from electric vehicles and wind turbines to defense equipment, data centers and high-tech consumer electronics. The problem? The United States depends a great deal on China for these critical materials with China mining around 70% and processing around 90% of rare earths. This has made rare earths the most important bargaining chip in the trade war between the U.S. and China. Now, the U.S. is seeking to develop a domestic supply chain for rare earths. In July, the Department of Defense announced a $400 million investment in U.S. rare earth miner and producer MP Materials. The company owns the only operational rare earth mine in the country. Energy Fuels is also producing neodymium-praseodymium oxide (NdPr) material for use in permanent magnets at its White Mesa mill in Utah. Despite this push, experts say many hurdles remain if the U.S. wants to break its rare earth dependence on China. Chapters: 00:00 - 02:16 Introduction 02:17 - 04:18 China’s rare earth dominance 04:19 - 06:53 Political bargaining chip 06:54 - 12:24 Ramping up U.S. supply 12:25 - 15:00 Is U.S. independence possible? Produced and edited by: Magdalena Petrova Camera: Lucas Mullikin Animation: Jason Reginato Senior Director of Video: Jeniece Pettitt Additional Footage: Getty Images, MP Materials » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Watch CNBC on the go with CNBC+: https://www.cnbc.com/WatchCNBCPlus About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Want to stand out, grow your network, and get more job opportunities? Sign up for Smarter by CNBC Make It's new online course, How to Build a Standout Personal Brand: Online, In Person, and At Work. Sign up today with coupon code EARLYBIRD for an introductory discount of 30% off the regular course price of $67 (plus tax). Offer valid through September 2, 2025: https://cnb.cx/4nUBgbA Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC on Threads: https://cnb.cx/threads Follow CNBC News on X: https://cnb.cx/FollowCNBC Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC #CNBC Rare Earths Are China’s Trump Card In The Trade War — How The U.S. Is Trying To Fix That