What's Your Problem? Can the US Break China's Grip on Rare Earths?
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Mar 12, 2026 David Abraham, author and rare-earths expert who studies commodities and supply chains, digs into how China built its rare-earth chokehold. He traces the 2010 warning, explains why refining and magnet specs matter more than raw tonnage, and argues electric vehicles could be the lever to rebuild U.S. industrial capacity. He warns rebuilding materials expertise will take years and careful policy.
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How China Quietly Captured The Rare Earth Chain
- China built dominance by doing the dirty, unglamorous work of mining and refining while Western firms avoided mines and processing.
- David Abraham traces this to China's long-term planning and willingness to accept environmental and labor costs to capture the full supply chain.
Japan's 2010 Cutoff Revealed Supply Fragility
- In 2010 China stopped shipments of rare earths to Japan during a territorial dispute, and Japanese manufacturing lines slowed or halted.
- David Abraham, working inside Japan's Ministry of Economy, watched just-in-time production grind because tiny rare-earth components didn't arrive.
China Keeps Materials But Exports Magnets
- China now restricts exports of raw rare earth materials while allowing finished magnets to leave, preserving downstream advantage.
- That policy blocks other countries from learning magnet-making and forces dependence on Chinese-made components.
