America's Rare Earth Magnet Gamble: Can it Break China's Dominance?
2025-02-09
Several US companies are attempting to build a domestic rare-earth magnet industry to challenge China's near-total dominance. While new factories are emerging, their combined capacity pales in comparison to China's massive production. China controls over 90% of the global market, possessing a vertically integrated supply chain. The US Department of Defense's requirement for domestically sourced magnets for its systems could increase costs, while China's overcapacity might lead to price wars. The success of US rare-earth magnet manufacturers hinges on overcoming cost and technological hurdles, alongside strong government support.