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The US Effort to Break China's Rare-Earth Monopoly (msn.com) 142

The New York Times checks in on U.S. university researchers and start-ups trying to create domestic rare-earth processing facility: There is too little money to be made in rare earths for the elements to be of much interest to mining giants, so the challenge of reestablishing a domestic industry has fallen to small companies like Phoenix Tailings, a Boston-area startup that runs the metal-making plant in Exeter, New Hampshire. A handful of other companies in the United States are processing rare earths in small quantities, including MP Materials, which owns a mine in Mountain Pass, California, and recently began producing rare-earth metal in Fort Worth, Texas. Similar efforts are underway in Europe and Asia. "It's small volumes of low-value materials that are very expensive to process," said Elsa Olivetti, a materials science and engineering professor at the Massachusetts Institute of Technology. "Meaning it's hard to make money."

Phoenix Tailings' New Hampshire operation is about 2 months old, housed in a converted medical device plant. The company buys metric-ton bags of powder — a mixture of neodymium and praseodymium bound with oxygen — from mining and refining companies in the United States, South America and Australia. It funnels that flour-like material into a drying oven and eventually into furnaces that heat it to the temperature of volcanic lava. This circuit takes up less than 15,000 square feet and is designed to generate no emissions other than those associated with the electricity Phoenix Tailings uses. The closed-loop design distinguishes this process from the more energy-intensive techniques used in China, where workers scoop up molten metal with ladles. That approach releases perfluorocarbons, potent greenhouse gases that do not break down easily.

In late 2024 the company was three weeks from bankruptcy — but it's recently been valued at $189 million.
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The US Effort to Break China's Rare-Earth Monopoly

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  • Tariffs Working? (Score:4, Interesting)

    by SlashbotAgent ( 6477336 ) on Sunday January 04, 2026 @08:58AM (#65900851)

    Are tariffs having the desired effect? Specifically onshoring?

    Seems like a good thing to me. But, I'm sure that this thread will be filled with outraged individuals who are totally not Chinese agents.

    • Re:Tariffs Working? (Score:5, Informative)

      by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Sunday January 04, 2026 @09:23AM (#65900873) Homepage Journal

      Seems like a good thing to me. But, I'm sure that this thread will be filled with outraged individuals who are totally not Chinese agents.

      Bringing rare earths production back to the US is a good thing. The right way to do it if you were going to do it with tariffs would have been to be consistent, with a well-established schedule phased in over several years so as not to fuck over your domestic industries which depended on the products. You would have to be a Chinese (or Russian) agent to think it was a good idea to do it all at once, and to be completely inconsistent about it and change the amounts repeatedly and chicken out on some of them and never actually institute some of them (I've been buying stuff from China all along and none of it has gotten any new tariffs) and generally waffle and whine, winding up looking stupid and weak.

      Whether you're picking up your fifty cents at the door, or you're chained to a table in Moscow, either way you can fuck off for free.

      • by rsilvergun ( 571051 ) on Sunday January 04, 2026 @11:24AM (#65901073)
        The problem is we don't treat people poorly enough and we don't let companies make cancer villages so nobody is going to try to compete on that cost. If you opened up a mine with workers paid as well as america, environmental regulations and safety like America then the foreign competition could run you out of business overnight by slashing prices and there wouldn't be anything you could do about it.

        If you want rare Earth mining in America you are going to have to subsidize it with the government. That's it. That's how you get it. That's what we did with the chip industry. And that's what you have to do with rare earth mining.

        I don't think any of this really matters because the modern ruling class is global and the major players have class solidarity and work together. They will squabble over small countries like Venezuela and Cuba and Afghanistan and whatnot but at the end of the day when it comes to the big boys they are all in the same big club and as usual you ain't in it.
        • Written by an idiot who does not know how "rare earth mining" (or probably any kind of mining) works.
          Hint: it is not done by little children with a pickaxe, or a hammer and a chisel under ground in bad air, with collapsing rocks behind you and the fumes of candles in your face.

          USA outsourced rate earth mining/refining/trade to the world market, because they wanted to Dave a dollar on the ton of material.
          As China happens to have mining options where "the stuff just lies around", they literally simply shovel

          • And miners in America are skilled workers that get paid very well and have a lot of worker protections. Yeah there are machines and robots that can do all that work but they cost a hell of a lot of money, need a hell of a lot of maintenance and periodically get destroyed.

            Using human beings, especially disposable human beings is much much more profitable. Combine that with cancer villages and the profits skyrocket.

            What that means you dumbass is that any fucking company that decides to do rare Earth m
            • Well, the "negative stuff" you mention, "cancer village" (what is that?) and all the other BS: does not exist in China - since decades.

              But you have a worldview you have to protect so that's not on the menu.
              No, you got it all wrong.

              You have a wold view from 30 years ago, or even 50.

              China has slaves, yes. Real slaves. People that get or got kidnapped and are forced to be slaves. Just recently they freed a dozens.

              And mind boggeling story of an ~80 year old man who finally found his 60 year old son who was kidn

              • "Cancer village" refers to the shanty towns near the mining and refining sites... they use tons of nasty stuff (cadmium, acids... by-products: radioactive waste, lead, asbestos, arsenic). The people who live there are going to develop cancer.
                Sure... China is far ahead of the US on worker and/or environmental protection... what kind of 'wages' do they pay the 'adults' working in the factories that make cheap knock-off stuff for Temu and everyplace?

                "Mined in deserts and refined with water" implies that someo

                • > "Cancer village" refers to the shanty towns near the mining and refining sites

                  "Cancer villages" are definitely a thing in China. In the USA too, where they're called "cancer clusters and sacrifice zones", and Canada definitely has some too.

                  Hard to tell who has it worse per capita but the issues don't seem related to rare earths

          • Do they sell the raw rocks containing some kind of rare Earth element and leave it to someone else (y'know... ship it to America, where we refine it down using acids and toxic stuff) to refine (America refines it to neodymium and sells it back to China) so they can make the chips?
            Of course, China doesn't use child labor (insert winky face here), and your jeans that cost $35 weren't made in a sweatshop in Pakistan, and your $800 iPhone wasn't made in Thailand for a handful of rice.
            If you actually did all the

            • The point is: rare earths are not rare. It is just a name they got in the 1800ds when "they knew" those elements need to be there, but had no clue how to find/detect them.
              They are eerywhere.

              They do not cause any particular environmental hazard. Unless you kind of deliberately make one. They do not involve slave labour or child labour unless you have earth moving equipment cheap enough to entrust it a slave or small enough to entrust it a child.

              And so on ...

              The US does not mine them because they do not want.

              • No child or slave labor? https://www.newsecuritybeat.or... [newsecuritybeat.org]

                Yes, I know "rare earth" metals aren't really rare (like Dodo feathers are rare).
                "The US doesn't mine them": even though, there's plenty of them here. https://www.questmetals.com/bl... [questmetals.com]

                Sure... mining them doesn't involve any environmental hazards... processing them certainly does... so, what're you gonna do... mine it here in the US, ship it to China to be refined in the dirty, toxic refinery, then have the actual mineral shipped back?

                What's this ab

                • Why would processing ores for rare earth produce environmental hazards?

                  Or more concrete: smelting bauxit to aluminium. WTF ....

                  Just because it is "technology" it is automatically an environmental hazard? Oh my god. Now I get why you hate China. They can do things you can not, without any environmental problems. Facepalm.

                  • A little Google, and this (for why processing rare earth metals use toxic stuff):
                    "What toxins are used for refining rare earth metals
                    The refining process of rare earth metals involves several methods, each with its own set of potential toxins and hazardous materials. Here are some of the toxins and chemicals used in the refining process:
                    Hydrofluoric Acid (HF): Used in the Ames Process to dissolve the ore and extract REEs. However, it is known to be toxic and can cause serious health issues if inhaled or ing

          • Was that every miner named Dave, or one in particular? My brother's name is Dave, but he's not a miner. Hasn't been since he turned 18.
        • You don't have to do it with the chip industry if you prosecute antitrust before it gets out of hand, and you don't have to do it with the rare earths industry because they existed here before. You only have to accept slightly less profit than if you export it to China.

          • I love prosecuting antitrust law but you can't do that to foreign companies especially ones in China backed by the Chinese dictatorship.
            • It can still be done, though the outcome would more likely be an import ban (authority the US has) rather than breaking the company up (authority the US doesn't have). Though the threat of the first could trigger the latter. It's like how the EU stood in the way of Microsoft buying Activision.
          • I didn't know the potato chip industry was so cutthroat!

        • The problem is we don't treat people poorly enough and we don't let companies make cancer villages

          Project 2025: Hold my beer [epa.gov].

        • by Teun ( 17872 )
          When things work out according to Trump the USA will have plenty of Rare Earth Materials in a place without significant population, Greenland!
        • by dbialac ( 320955 )
          My understanding is there are mines for other materials that contain a lot of rare earths as waste. They're literally sitting in piles at the mine. We have the materials, we have the mining, we just need to start using it.
        • As in subsidies to offset the regulatory burden? It could work, but there are probably simpler ways to go about it.

          I find it amusing that at both extremes of the political spectrum, there is a belief that there is a global ruling cabal controlled by the other side's extreme wing. This leads me to suspect that both sides are wrong about it.

        • The problem is we don't treat people poorly enough and we don't let companies make cancer villages so nobody is going to try to compete on that cost.

          Really? [theguardian.com] Or you're living in a bubble?

          In contrast, China has been moving toward more environment friendly mining practices [biologicaldiversity.org]:

          Through this upcoming regulation, China intends to protect its national interests and industrial security as well as prevent activities, such as illegal mining, destructive mining, unplanned and over-planned production, illegal trading of rare earth products, and destroying the ecological environment, among others.

          Of course, the western critics, like yourself, will only emphasize the national security aspect which China should also protect especially as a response to the western sanctions on semiconductor products.

          It is also well known that the western world just shift their pollution to the developing world, including China [wikipedia.org].

          Westerners have such a mentality that only paint itself as victim never

    • by cusco ( 717999 )

      The problem is that whatever production appears in the US is 1) tiny, and 2) exceedingly expensive. US aluminum producers noticed that there was a shortfall in production worldwide of aluminum, so vowed to reopen a couple of mothballed plants to produce an extra 80,000 tons/year. The problem with this "wonderful" outcome is that 1) the shortfall is 2 MILLION tons, and 2) creaking old US factories' production processes are so inefficient that the only place their aluminum can be sold is in the US to avoid

      • I would also assume that given the choice between selling power to AI data centres at a huge profit and alu potlines at barely-break-even, approximately 100.0% of power companies will go for AI's mountains of money.
        • by cusco ( 717999 )

          I assume you're referring to the US? China's government can, and does, direct that energy where it believes the most long-term value lies. Unlike the US with it's quarterly bonuses for C-suite execs controlling corporate decisions as they play Executive Musical Chairs and shift from company to company Chinese corporations are required by banks to have long term plans and to stick with them.

        • Have the LLM-AI datacenters turned any kind of profit yet?

      • Well, I'd agree with that last statement, but would not apply it to the current administration as the problems you describe began in the 90's.
        • by cusco ( 717999 )

          Well, in all honesty I think my last statement could apply to pretty much every Administration since the early 80's, when the lawyers and bankers took over the government.

          • You mean the 1780's, right? At least so far as lawyers are concerned. Well, maybe 1797, when a lawyer named John Adams became President.
            Whether bankers are friends, enemies, or a necessary evil has been an open question throughout our history.
    • Are tariffs having the desired effect? Specifically onshoring?

      Seems like a good thing to me. But, I'm sure that this thread will be filled with outraged individuals who are totally not Chinese agents.

      The issue is "compared to what?"

      The resources (that is, the people, money, and equipment, not the rare earth elements themselves) being spent creating barely profitable rare earth metals could otherwise be used to mine lithium, fabricate magnets from the raw elements, build solar panels, make chips, build data centers, or a million other things. Generally we use the market and price signals to discover what activities are the most valuable.

      That these companies are barely making money is a good indication th

    • Are tariffs having the desired effect? Specifically onshoring?

      Seems like a good thing to me. But, I'm sure that this thread will be filled with outraged individuals who are totally not Chinese agents.

      You have some things really mixed up. China's export restrictions (in response to the earlier tariffs) did that. It was all over Fox News because Trump responded with 100% tariffs and then they both backed down. That's how big a deal access to them is. It's not so much that we want rare earth processing here, it's dirty and doesn't make much money, it's that we don't want it all from China. Rare earth processing investments are a big part of our trade deals with other countries.

      They're raw materials used in

    • Did Biden pass the tariffs? Because that's when the companies listed in TFS started doing what they are doing. 2024.

    • by tlhIngan ( 30335 )

      Rare earths, despite their name, aren't really all that rare. The US has a lot. The only reason they're "rare" is because it's hard (read expensive) to extract the elements from the minerals, often using very nasty chemicals and very polluting methods.

      China was usually the place to buy them because it was cheap and well, we can look the other way on environmental rules. Because surprise surprise, no one wants that pollution in their backyard, making it very expensive to refine in the US.

      All tariffs have don

  • pollution (Score:3, Interesting)

    by Ritz_Just_Ritz ( 883997 ) on Sunday January 04, 2026 @09:17AM (#65900861)

    Perhaps this will lead to more sustainable processes for refining rare earth products. The reason that China is dominating the industry (other than a concerted effort by the government to buy up as many sources of raw materials as they can outside of China) is due to the absolute "dirtyness" of the refining process. It uses a lot of energy and produces noxious waste products that first world countries would rather not have to deal with. China is willing to take the environmental impact hit to corner the market. They know there is significant money to be made and a huge strategic advantage to controlling the supply of refined rare earth metals.

    The raw materials are not particularly scarce around the world so a process breakthrough would deflate China's dominance rather quickly.

    • The reason that China is dominating the industry (other than a concerted effort by the government to buy up as many sources of raw materials as they can outside of China) is due to the absolute "dirtyness" of the refining process.

      That, of course, is nonsense. The reason is greed. American oligarchs who ran companies which use rare earths figured out that it was more profitable to let China produce them with a lot of pollution in China, and ship them here producing more pollution, than to produce them with lower levels of pollution here.

      • Re:pollution (Score:4, Insightful)

        by Fons_de_spons ( 1311177 ) on Sunday January 04, 2026 @10:04AM (#65900923)
        It is easy to put the blame on oligarchs, very soothing. But... we enthusiastically help by buying from the cheapest supplier. We are all in it together. It is human nature. Luckily we are the only creatures who can go against our nature. Not an easy process though. Very similar to the effort it takes to lose weight.
        • Re:pollution (Score:4, Insightful)

          by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Sunday January 04, 2026 @10:08AM (#65900927) Homepage Journal

          It is easy to put the blame on oligarchs, very soothing. But... we enthusiastically help by buying from the cheapest supplier.

          1) We buy what we're offered
          2) As they have exported the jobs we've made less money and have less choice about what we buy based on what we can afford

        • by ffkom ( 3519199 )
          On how many occasions have you, as a consumer, be presented with the option of buying "domestically produced item A" versus "made in china item B", where "A" was not just a re-labeled or insignificantly modified "B"? I for one would gladly pay some more for a product if there was a domestic option that was well documented to not just be an amalgamation of Chinese parts, but in almost every case I do not see such being on offer. On the contrary, many domestic manufacturers even cannot be bothered to do any B
          • I know of one case. Custom pcb's. JLCPCB is the leader. I did not know about them until a few years ago. I had been using oshpark. I try to buy US, but the price advantage JL offers is huge. Like 10X+ One board would have been 250 at osh and was 10 at JL. Even with shipping (pre-trump) the JL came to 24 total. And it was on my doorstep faster than osh turns. 7 days. A recent board even with the tariffs came in at 40 (with shipping/tariffs) instead of 200 at osh. Still 7 days to my door. For small boards I'l
            • JLCPCB has an insanely well optimised process, this is why they are so fast with their manufacturing. And since they are the leader, they operate on such a large scale that they can easily squeeze the small stuff orders between their large orders so they don't waste anything.

        • It is not so much human nature as capitalism. China has basically figured out how to game capitalism and turn it to their advantage. They did so thru carefully managed production that is the antithesis of capitalism, well short term capitalism anyway. They succeeded. And they paid the price by enduring negative returns initially. I just don't see short term capitalism winning this one. US capitalism will cave to the price advantage China offers. I always go back to shark tank. A profitable company is presen
          • by cusco ( 717999 )

            Increasingly Chinese products are not only cheaper, but more reliable and better designed. I suppose that comes from having the best technical education system in the world and sufficient population to fill those schools.

        • It is easy to put the blame on oligarchs, very soothing. But... we enthusiastically help by buying from the cheapest supplier. We are all in it together. It is human nature. Luckily we are the only creatures who can go against our nature. Not an easy process though. Very similar to the effort it takes to lose weight.

          I can easily choose whether or not I wish to support a Chinese sweat shop making sweatshirts for seven cents an hour, because I’ve been armed with that choice as a consumer.

          Now tell me exactly how I get to choose my rare earth metal supplier. Because last I checked you need a HELL of a lot more than consumer power to even power a delusion of choice here.

          Yes. This IS one of those moments when we can blame oligarchs. We the People didn’t choose the cheapest supplier. Greed N. Corruption, CEO d

          • So, if you don't buy the 'sweatshop sweatshirt', what sweater do you buy?
            Are you buying rare Earth metals in bulk? Or do you mean who made the magnet for the fridge magnet?

            And, what change are we going to institute with our elective power (do you mean popular vote or the electoral college?)?
            Okay, so you don't buy anything -not- made on US soil (and, you get rid of anything not US-made)... what're you left with?
            Even the few things that are built in the US are made of foreign components.

          • This wasn't always the case. There once were domestic rare earth suppliers. Not only oligarchs drove them out of business. China played us and we happily assisted them by buying cheap stuff. Again, easy to blame some far away oligarch. We all helped by hunting lower prices, not buying local etc. Oh well... guess we all have work to do.
      • Why do people continue to misuse the word "oligarch"? People who wield power due to their wealth are plutocrats. Members of a politburo are oligarchs.

        • A plutocracy is a type of oligarchy.

          Have you ever been right about anything? Because today is not that day.

          • Only if their rule is corrupt, tyrannical, and more than a politician's slogan (which is all that it is in the US). Oligarchy is the corrupt form of "rule by a few", with the pure form being Aristocracy (rule by the best).
      • The reason that China is dominating the industry (other than a concerted effort by the government to buy up as many sources of raw materials as they can outside of China) is due to the absolute "dirtyness" of the refining process.

        That, of course, is nonsense. The reason is greed. American oligarchs who ran companies which use rare earths figured out that it was more profitable to let China produce them with a lot of pollution in China, and ship them here producing more pollution, than to produce them with lower levels of pollution here.

        100% this.

        And none of that Vote With Your Wallet shit applies either. At no point in the last 30 years was a Democratic voting booth offering even the illusion of choice when it came to this particular aspect of manufacturing. These actions are decided on by Greed behind closed doors, with citizens ironically paying more in save-the-planet taxes created by MBAs who fly private, all for “choosing” to let China pollute and fill our rare earth orders.

    • by cusco ( 717999 )

      The "process breakthroughs" have already been developed.

      In China.

      And in our wonderful 'free trade' system we're not allowed to buy them.

      • by PPH ( 736903 )

        we're not allowed to buy them.

        Buy them? We should have as much respect for China's IP as they do for ours. That is to say: zero.

        But of course, it's a game of quid pro quo. We copy their rare earths procesing technology and they threaten to cut off the production of fidget spinners. And then the US faces a future of unpacified autists.

        • by cusco ( 717999 )

          We should have as much respect for China's IP as they do for their own. That is to say: zero.

          FTFY
          The Chinese manufacturing sector is essentially an open source project.

          https://kdwalmsley.substack.co... [substack.com]

          Knowledge spillovers create benefits for firms, besides the companies that make the first discoveries or innovations. That results in market failure, because it is a disincentive for firms to do research and development, since they cannot enjoy all the revenue streams that result. But the deliberate building o

  • That was about minerals. Oil too of course but they have lots of minerals for us to take.

    Mexico and large parts of South America have those too. Cuba comes to mind. Which is why Trump is talking about invading them next.

    Eventually we're going to have our hands in too many pots and with birth rates going down Trump is going to have to institute a draft.

    If you're a hardcore Trumper guessing you probably don't care if your kids get drafted to die in wars for oil and lithium.

    For everybody else
    • by guygo ( 894298 )

      and we'll invade Greenland so we can take their rare earth minerals.

      • and we'll invade Greenland so we can take their rare earth minerals.

        Wait, I thought we wanted Greenland for the Strategic Ice Cube Reserve.

    • It was about appeasing the base with lawless triumphal conquest masking resource curse theft to win over big oil American owners. Project 2025-style. Trump's failing health led to terminal discounting to start big, lawless wars that won't have any consequences for him.
  • has spoken "There is too little money to be made in rare earths for the elements to be of much interest to mining giants".
    • Which means something is wrong, as demand is high. Something has distorted the market. Probably the obvious - regulatory costs ate the profit margin here, allowing unregulated and often subsidized foreign competitors to set global prices at which no US concern can compete.
  • by BrendaEM ( 871664 ) on Sunday January 04, 2026 @12:14PM (#65901157) Homepage
    Are dumps are full of neodymium from old hard drives, and lithium from batteries. You can take the magnets out of an old hard drive by boiling it in water, and using a pair of pliers with a jaw pushing on edge of the magnet, and the other on the edge of steel plate. Industrially, lithium could probably be extracted from old batteries by grinding them and soaking them in water to react the lithium
    • Are dumps are full of neodymium from old hard drives, and lithium from batteries. You can take the magnets out of an old hard drive by boiling it in water, and using a pair of pliers with a jaw pushing on edge of the magnet, and the other on the edge of steel plate. Industrially, lithium could probably be extracted from old batteries by grinding them and soaking them in water to react the lithium

      No doubt. The devil is in the details. I'm sure some bright sparks thought the same thing, ran the numbers, and concluded it's far cheaper to mine new neodymium than to try to recover it from e-waste. I'm pretty sure people are looking at recycling batteries. I'm guessing mining new lithium is actually quite cheap if it's easier to dig up new ore rather than melt down ad purify an existing battery.

      That's been the dirty little secret of recycling for 40 years: many things you'd think would be economical to r

      • by cusco ( 717999 )

        That's been the secret to China's success, sure they have companies which pursue the high-profit industry segments, but they have a plethora of companies which are content with a much lower return like REE and a government which supports their effort. With their galloping advances in robotics and AI it would be surprising if they don't become the world leader in consumer waste recycling very soon.

        • That's been the secret to China's success, sure they have companies which pursue the high-profit industry segments, but they have a plethora of companies which are content with a much lower return like REE and a government which supports their effort.

          Right. But follow the money: to subsidize low profit industries, they have to be getting money from somewhere, ultimately by taxing their citizens. That's...a model a suppose.

          With their galloping advances in robotics and AI it would be surprising if they don't become the world leader in consumer waste recycling very soon.

          I'm not sure how B follows A but let's set that aside for now.

          China already was the world's recycling destination. We kept sending them bales of unusable trash which found its way into rivers where it eventually wound up in the Pacific garbage patch. I seem to recall they stopped accepting recyclables a few years ago because it really

          • by cusco ( 717999 )

            I'm not sure how B follows A

            Ever seen a consumer recycling operation? It's a miserable, dangerous, low paying job mostly staffed by illegals because rather than pay worker's comp the company can get them deported (much like the meat industry), the sooner it's automated the better. Plastics are particularly problematic for them, because while almost all of them have the "recyclable" symbol on them it's difficult to tell the various types apart so most of them get incinerated.

            Robots and AI can sort and separate different types of mate

    • What the heck do you mean by "boiling old harddrives in water"?
      I just use screwdrivers... they make awesome fridge magnets.
      (Tip: if it's a laptop harddrive, be careful with the platter... they're spun glass, and they don't do much break as explode)

  • If something is of strategic importance but is not economically profitable, that's *exactly* when the federal government should be financially supporting it. But good luck explaining that to the Imbecile-In-Chief.

He: Let's end it all, bequeathin' our brains to science. She: What?!? Science got enough trouble with their OWN brains. -- Walt Kelly

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