China holds a dominant position in the processing of rare earth elements, a group of 17 metals crucial for a wide range of technologies, from consumer electronics to advanced military systems. These elements, though not as rare as their name suggests—cerium, for example, is relatively common in the Earth’s crust—are difficult to extract and refine, giving countries that control this process significant economic and political influence. China's control over about 91% of the global separation and refining of rare earths has positioned it as a key player in international trade and technology sectors. The U.S. military, for instance, relies heavily on rare earths for its F-35 fighter jets and Virginia-class submarines, while many consumer electronics also depend on these materials. China’s dominance in this field began in the late 1980s, as its expansion into mining and lower production costs made it difficult for the U.S. to maintain its own rare earth processing industry. The Mountain Pass mine in California, once a major U.S. producer, closed in 2002 but was restarted in 2017. However, as recently as 2025, the U.S. still imported more than two-thirds of the rare earth elements it used. Rebuilding a domestic rare earth supply chain in the U.S. has been slow, partly due to a lack of experienced engineers and China’s restrictions on exporting separation technology. To address this, the U.S. government has committed over $7 billion since April 2025 to boost rare earth production. The Pentagon invested $400 million in MP Materials, a key U.S. rare earth producer, while the Commerce Department signed a letter of intent to provide $277 million in direct funding and a $1.3 billion loan to USA Rare Earth. However, China’s export controls, including restrictions on certain rare earth products and technologies, have complicated these efforts. In October 2025, China introduced six export control measures, some of which were suspended until November 10, 2026, in exchange for the U.S. pausing its affiliates rule for one year. However, some restrictions, such as licensing requirements for seven heavier rare earths, remained in place. These controls have had tangible impacts, such as forcing Ford to shut down a plant for a week due to a shortage of magnets. On June 22, 2026, China added 10 U.S. companies, including MP Materials and USA Rare Earth, to its export control list, in response to a similar move by the Pentagon. As the temporary truce between the U.S. and China expires on November 10, 2026, the U.S. faces three main options: continuing to rely on China’s processing, which leaves it vulnerable to future restrictions; rebuilding its own supply chain, which will take time and significant investment; or developing partnerships with allies like Australia or Japan to diversify its sources. The outcome of President Xi’s meeting with Donald Trump on September 24, 2026, may influence the future of the Nov. 10 restrictions, but the underlying competition over control of rare earths is likely to persist.