China’s decision to keep its new rare-earth quotas secret is fresh proof that it means to tighten control of the market — and that President Trump is absolutely right to make US independence on the vital resource a top priority.
The quotas themselves aren’t new: The Chinese Communist Party has been using them since 2006 to control supply of the much-sought-after materials.
But this year, Beijing is being particularly hush-hush on the amounts the government will allow, even reportedly warning companies not to divulge the quota numbers.
That’s grim news for . . . everybody.
Rare earths are a vital component for a whole host of products that make up modern life, from laptops to electric vehicles to smartphones.
The US military needs them, too, for everything from drones to submarines to warplanes.
Yet getting these materials generally means going through Beijing; China dominates the market, producing about 90% of the world’s rare earths.
President Xi Jinping used this massive advantage back in April, restricting exports of rare earths as a leveraging tool during trade talks with the White House.
Trump has clearly recognized America’s lack of direct access to rare earths as the economic and national-security risk that it is; addressing that threat has been a project of the White House since Day 1.
Look at the prez’s efforts to secure a mineral deal with Ukraine, and his fixation on buying Greenland, which is rich in rare earths.
Last month, the administration took a solid step toward declaring rare-earth freedom, with the Department of Defense inking a massive $400 million deal to buy 15% equity in MP Materials, the operator of what was the only rare earths mine in the United States.
Days later, Apple signed a $500 million deal with MP Materials, part of CEO Tim Cook’s push to reduce his company’s reliance on China.
That’s a wise move for the iPhone maker, but it’s a win for Trump, and America, too.
Meanwhile, Ramaco Resources just opened the nation’s first new rare-earth mine in 70 years — the Brook Mine outside Ranchester, Wyo.
So while Trump’s tariffs seek more equitable trade deals, his broader economic approach aims for US self-sufficiency and ending our reliance on adversaries, like China, for critical materials and parts.
The deal with MP Materials is just the first step; ramping up further domestic production would take significant cash and time investment, which is why Team Trump needs to keep the push going.
Mineral agreements with friendlier partners could also help, like the one the Trump folks signed as part of the peace deal it negotiated between Rwanda and the Congo in June.
Even investments in recycling, which could make the materials from old phones and laptops reusable, could play a part.
China’s current lock on rare earths is a ticking time bomb that the Trump administration is dead right to dismantle.
Stick to it, Mr. President.
This story originally appeared on NYPost
