US Rare Earths Strategy: Domestic Production and International Deals

Rare Earths as Geopolitical Currency

• 💡 In 2025, rare earths have emerged as a powerful currency in reforming geopolitical alliances, a development few anticipated.
• 🌍 Negotiations for rare earth access have occurred in multiple international forums, including London, Geneva, and South Korea.

US Domestic and International Rare Earths Efforts

• 🇺🇸 The US government is accelerating domestic rare earth efforts, including the Vulcan deal for mining and processing, and aims to produce permanent magnets.
• 🇸🇦 Internationally, the US has increased its involvement, such as becoming a 49% shareholder in a Saudi Arabian refinery.
• 🔍 The US is focusing on securing heavy rare earths, as domestic deposits are less endowed in this category, while Saudi Arabia has larger deposits.

Addressing Environmental and Safety Concerns

• 🏭 Concerns exist regarding the dirty and dangerous nature of rare earth processing, with some automotive executives expressing apprehension about domestic refining.
• ⚠️ While the separation process for rare earths is pollution-intensive, modern mining and processing are significantly cleaner than two decades ago.
• 💧 Innovations like closed-loop water systems at mines demonstrate a commitment to cleaner operations, surpassing methods used in China.

Progress and Future Outlook for US Rare Earths

• 📈 The US has made substantial progress in securing critical minerals through bilateral agreements with countries like Japan, Australia, and Saudi Arabia.
• 🚀 While self-sufficiency in two years is considered ambitious due to the long-term nature of industry development, the US is significantly ahead of last year's progress.
• 🚗 Efforts are underway to engineer rare earths out of automotive production, with some engines now produced without them, though widespread elimination is still a ways off.