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How the United States Lost the Rare Earth Materials War to China

month, in response to President Donald Trump’s tariff regime, China imposed new export controls on rare earth materials and magnets. Officially, these aren’t bans—but practically, shipments have stopped.

Through sustained experimentation and incremental refinement, Chinese firms mastered techniques no textbook could teach—the precise dance of acids, heat, and timing that transforms raw rock into high-performance material. For example, they pioneered hydrochloric acid-based extraction methods compatible with low-cost infrastructure like polyvinyl chloride, or PVC, and fiberglass, avoiding the need for expensive stainless steel used in Western setups. What’s more, even if the U.S. overcomes its technological inexperience and builds the foundations of a domestic supply chain, it will still face China’s vast excess capacity—more than 50 percent in some parts of the processing line.

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