How rare earth minerals could give China the upper hand in U.S. trade talks

China dominates the global supply chain for rare earths, mining about 70% and refining 90% of the materials used to produce everything from wind turbines and defense equipment to electric vehicles and car seats. The United States produces virtually none of the world’s rare earths, whose extraction can be devastating for the environment.

That economic vulnerability has come into sharper focus since April, when China imposed export controls on seven strategic rare earth metals and related magnets amid an escalating trade war with President Donald Trump. Companies, especially automakers and business associations in the U.S., Europe and elsewhere have sounded the alarm, warning that China’s rare earth restrictions risk delays that could bring manufacturing to a halt.

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