US Rare Earths Race Intensifies as Europe Struggles to Secure Supplies

US Rare Earths Race Reshapes Global Defense Supply Chains

The US rare earths race intensifies as Europe confronts shrinking stockpiles and tightening Chinese controls. European defense manufacturers now face severe supply pressure while their American rivals secure materials with greater speed and coordination. As a result, the gap between US and European procurement grows rapidly, threatening production timelines for high-tech weapons systems.

European buyers report slow and fragmented purchasing processes that weaken their bargaining power. Meanwhile, US defense companies move aggressively through traders such as Noble Elements and Tradium GmbH, locking in terbium, neodymium, and dysprosium within days. This speed allows them to shield component suppliers from market volatility and Chinese export restrictions.

How the US Rare Earths Race Outpaces Europe’s Defense Industry

The US rare earths race advances because American firms combine urgency, financial strength, and strategic supply chain insight. Traders confirm that US buyers understand quantities, specifications, and delivery schedules far better than many European buyers. This clarity enables rapid purchasing and upstream coordination that secures materials before prices rise or inventories disappear.

Europe shows a more fragmented approach as defense companies attempt to buy rare earths directly without aligning with component suppliers. This creates last-minute purchases that fail to meet technical requirements. German manufacturers warn that available stock now lasts only months, pushing them into a high-price market dominated by faster US buyers. China’s export controls worsen the imbalance because pre-restriction stock sells almost instantly.

Europe Seeks Long-Term Fixes but Faces Technical and Regulatory Barriers

Europe now looks for structural solutions as it falls behind in the US rare earths race. The EU’s Critical Raw Materials Act and the upcoming RESourceEU initiative aim to reduce dependence on China. Germany’s KfW has also launched a €1 billion raw materials fund, and Berlin is exploring joint mining ventures with Canada, which holds major rare earth reserves.

However, Europe struggles with processing capacity, not geological availability. Refining rare earths creates hazardous byproducts and requires specialized technology, both in short supply across the EU. France and Germany even rely on retired experts to rebuild lost processing know-how. Rheinmetall AG reports holding billions in strategic materials, but smaller companies lack the resources to stockpile, exposing them to severe supply shocks.

SuperMetalPrice Commentary:

Europe’s rare earths crunch highlights a widening strategic gap in global defense supply chains. The US rare earths race advances because Washington backs mining, processing, and guaranteed pricing through MP Materials and other partners. Europe must now decide whether to coordinate at the same level—or risk chronic shortages that slow weapons production. For investors and suppliers, these conditions signal rising demand, higher premiums, and expanding long-term contracts across the rare earth value chain.