One unintended consequence of President Trump’s sweeping tariff policies is that they’ve exposed how dangerously reliant America is on foreign rare earth materials.
Rare earths are essential for everything from electric vehicles and semiconductors to robotics and missile guidance systems. But because China controls nearly 90% of global production, Beijing has used that dominance as leverage.
The imbalance isn’t just an economic problem. The White House views it as a national security threat. For example, earlier this year, it cut off rare earth exports to the U.S. in retaliation for Trump’s tariffs.
China has been “rapidly expanding its munitions production and acquiring advanced weapons systems and equipment at a pace five to six times faster than the United States” thanks to its dominance in rare earths, according to the Center for Strategic & International Studies.
Trump has moved aggressively to close the gap. In April, he signed an executive order to stockpile rare earth metals mined from the Pacific Ocean seabed.
Then in June, Reuters reported that the White House was preparing to invoke emergency powers to waive legal hurdles and fast-track domestic production of critical minerals and military equipment.
The Defense Production Act (DPA) would serve as the legal foundation, giving Trump sweeping authority to direct industry in a national emergency.
Trump already seized the opportunity and cited the DPA in his seabed mining order. However, that order has never appeared on the Federal Registrar, raising questions about its status.
Going warp speed
Now the Trump administration is considering a different tactic: a rapid, “Operation Warp Speed”–style approach to rare earth production.
On July 24, top officials — including Trump trade advisor Peter Navarro and National Security Council supply chain chief David Copley — met with executives from U.S. rare earth firms and major tech companies like Apple (AAPL), Microsoft (MSFT), and Corning (GLW).
Navarro and Copley reportedly told them the White House may replicate the fast-track model used during Trump’s first term to mass-produce Covid-19 vaccines.
Specifics remain unclear, but they hinted that the $400 million Pentagon investment in Nevada-based MP Materials (MP) is “not a one-off.” Additional government-backed deals are said to be in negotiation.
MP Materials has also struck a $500-million contract with Apple to supply magnets produced at its Fort Worth, Texas facility — known as Independence — using recycled feedstock processed at its Mountain Pass site in California.
The agreement underscores how crucial rare earths are to the tech industry, from iPhones to high-end computing.
With China’s dominance intact and defense needs mounting, the Trump administration appears poised to accelerate efforts to bring rare earth production back to U.S. soil at unprecedented speed.
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