Particle.news
Download on the App Store

U.S. Moves to Seal Rare-Earth Truce With China by Thanksgiving

China controls most processing of critical minerals, leaving Washington to pursue long-term domestic capacity.

Overview

  • U.S. Treasury Secretary Scott Bessent said negotiators aim to finalize a rare-earths agreement with China by Thanksgiving after a late‑October leaders’ meeting produced a one‑year pause on certain Chinese export curbs.
  • Under the tentative terms, Bessent said supplies would return to pre‑April 4 conditions, with the U.S. planning to scale back some tariffs and China committing to major soybean purchases through 2026.
  • Bessent said Washington retains multiple levers if Beijing fails to follow through, and he rejected a report alleging planned Chinese limits on sales to U.S. firms with military ties.
  • Washington is accelerating domestic efforts including eVAC’s new processing center in South Carolina and a Pentagon-backed expansion at MP Materials to build a mine‑to‑magnet capability.
  • Analysts caution that U.S. self‑reliance will take years given China’s roughly 70% share of global rare‑earth mining and over 90% of processing, with the U.S. importing about 80% of its needs in 2024.