US Ending Chinese Dominance of Critical Minerals: Navarro Predicts Industrial Breakthroughs

US Push to End Chinese Dominance of Critical Minerals

The United States is accelerating efforts to reduce dependence on China for critical minerals, including rare earths and permanent magnets. Former White House trade adviser Peter Navarro highlighted that American industrial innovation could soon disrupt China’s near-monopoly on these materials. Navarro warned that Beijing has leveraged its dominance as a geopolitical tool, but he emphasized that US breakthroughs would neutralize this influence.

China controls over 90% of global rare earth refining capacity, compared with just 4% for second-place Malaysia, according to the International Energy Agency. This supply concentration has allowed China to exert pressure on global markets and trade partners, including the United States, the EU, and India. Navarro cited past trade conflicts, including the 2023 tariff escalations, as examples of China’s ability to “weaponize” critical minerals.

Meanwhile, the US has pursued a network of strategic partnerships with eight allied nations—Japan, South Korea, Singapore, the Netherlands, the UK, Israel, the UAE, and Australia—to secure critical mineral supply chains. These agreements aim to enhance advanced manufacturing, semiconductors, AI infrastructure, and transportation logistics. Additionally, Navarro suggested tapping into alternative sources, including Venezuela, to diversify supplies further.

Strategic Implications for Global Rare Earth Markets

Navarro emphasized that American policy combines industrial growth with diplomatic engagement. He argued that diplomacy remains vital while the US develops domestic production capabilities. Trade truce agreements with China and selective tariff reductions on over 200 consumer products illustrate Washington’s balancing act between supply security and economic affordability for households.

The EU has also come under pressure to adopt matching tariffs to prevent China from redirecting exports. Navarro warned that failure to coordinate could undermine US efforts to weaken Chinese market dominance. At the same time, US manufacturing indicators show contraction, highlighting the urgent need for domestic industrial expansion to secure long-term critical mineral independence.

China’s dominance in rare earths has global economic and strategic implications. As demand for electric vehicles, renewable energy, and electronics grows, supply chain vulnerabilities could influence both prices and geopolitical leverage. Navarro’s forecast signals an era where US innovation, allied cooperation, and targeted policies may reshape the critical minerals market.

SuperMetalPrice Commentary:

Navarro’s statements reinforce a growing trend: the US is actively seeking to decouple from Chinese mineral dependency. This strategy will likely accelerate investment in domestic mining, recycling, and magnet production. Companies like MP Materials, Lynas Rare Earths, and Tesla could benefit from a more localized supply chain. However, global prices may remain volatile during the transition, as new production ramps up and geopolitical tensions persist. Market participants should monitor US-allied partnerships and emerging mining projects to anticipate shifts in rare earth pricing and availability.