If the U.S. is serious about building a resilient, domestic REE supply chain, it must act with urgency. Here’s how we can do it, and do it fast:
The U.S. must follow China’s lead by strategically funding and investing in rare earth producers and infrastructure. Rare earth development, particularly refining, requires significant capital, unless the asset is already advanced and leverages existing infrastructure. That is rarely the case in the U.S., and while both private and public companies are raising funds, significant federal support is essential to compete with China at scale. America’s late start means we must move faster and spend smarter. We can’t afford to wait.
Once U.S. producers are operational, price volatility becomes the next major hurdle. China can manipulate the global market by flooding it with underpriced material, undermining U.S. startups before they can gain traction. A temporary pricing floor or purchase guarantee for U.S.-sourced rare earths would help stabilize the market and protect domestic growth. The U.S. has implemented similar pricing strategies to support other foundational industries, including oil and agriculture. America’s emerging rare earth industry is critical and could benefit from these types of pricing initiatives.
While the U.S. rightly values environmental protection and community impact, permitting delays are hampering progress. Responsible, low-impact projects are waiting in line, when they should be fast-tracked. We must retain environmental oversight but remove unnecessary bureaucratic barriers that stifle innovation and increase costs. China has little to no concern with environmental protection in regard to REEs, so removing these roadblocks in the short term will not only allow U.S. companies to get set up to compete, but will also be better for the environment in the long term, all while delivering significant value for American stakeholders.
The rare earth bottleneck isn’t mining—it’s refining. Processing capacity outside China is severely limited. The U.S. needs a centralized, government-backed refinery that serves multiple companies, enabling cost-effective and collaborative scaling. This shared facility would accelerate production, reduce risk, and mark a crucial step toward independence from China’s stranglehold. I believe this effort is the best path forward for Americans to unite and build the industrial infrastructure required to combat the big bully in the rare earth space.
This isn’t just about minerals. It’s about national security, technological leadership, and economic resilience. The time to act and join forces is now.
Kuljit (Jeet) Basi is the president and executive chairman of Tactical Resources Corp.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
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