CRITICAL MINERALSThe Missing Link in America’s Critical Minerals Push Isn’t Mining – It’s Processing Expertise
The United States is spending billions of dollars to secure access to critical minerals – minerals and metals that are essential to modern technology, from electric vehicles to smartphones and military systems. But amid the push to dig more, one question gets far too little attention: Who will actually process what comes out of the ground?
The United States is spending billions of dollars to secure access to critical minerals – minerals and metals that are essential to modern technology, from electric vehicles to smartphones and military systems.
But amid the push to dig more, one question gets far too little attention: Who will actually process what comes out of the ground?
Between mining and the finished product lies a complex chain of separation, refining and advanced manufacturing. Since the 1990s, however, the United States has lost much of its critical mineral processing capacity.
Rebuilding domestic mineral supply chains will depend not only on resource availability and funding, but also on whether the U.S. can rebuild the technical expertise and industrial systems required to process those materials on a large scale.
How America Lost Its Lead
The United States was a global leader in rare earth minerals from 1965 through the mid-1980s. It produced about 15,000 metric tons a year, about three times the amount produced by the rest of the world.
The Mountain Pass mine in California supplied the majority of the world’s rare earth elements used in electronics and the defense industry. American metallurgists, chemical engineers and processing facilities had significant expertise in its production and processing.
However, environmental damage, including wastewater pipeline leaks that released radioactive wastewater into the Mojave Desert during the 1980s and 1990s, and tightening regulations increased operating costs in the United States. During that period, much of the world’s manufacturing base for rare earth elements shifted to China, where labor costs were lower and environmental regulations were less stringent.
As production grew abroad, U.S. production of rare earth elements fell sharply – to near zero by the early 2000s, according to the U.S. Geological Survey.
In recent years, as much as 90% of the rare earth minerals extracted in the United States and allied countries have been shipped to China for processing. In 2024, the U.S. relied on imports for about 80% of its rare earth compounds and metals.
Why Bringing Processing Back Is Not Simple
The U.S. government is now pushing to increase domestic critical minerals production, citing national security. But building a processing facility is not like opening a warehouse.
These facilities require years of permitting, highly specialized equipment and a workforce trained in metallurgy, chemical engineering and industrial systems operation. The time from investment decision to production can stretch across a decade.
