Exclusive News: The United States will adopt special strategies to rapidly increase rare earth production, aiming to curb China -- Report
U.S. White House officials met with representatives from technology and rare earth companies to discuss strategies for increasing rare earth production, aiming to curb China's market dominance. The meeting was hosted by Navarro and Copley and involved companies such as Apple and Microsoft. Officials stated that they would implement measures similar to those during the pandemic, setting a price floor for rare earths to attract investment and enhance supply chain security. Rare earths are widely used in high-tech and defense sectors, and the government hopes to rapidly increase production, emulating the speed of COVID-19 vaccine development
On July 24, technology companies and rare earth companies met with White House officials.
Navarro confirmed the meeting, aiming to quickly boost U.S. rare earth production.
Sources say tech companies are encouraged to invest in the rare earth industry.
China's suspension of exports highlights the vulnerability of the U.S. supply chain.
Reuters, July 31 - Five sources told Reuters that senior White House officials informed a group of rare earth companies last week that they are adopting strategies similar to those during the pandemic to increase the production of critical minerals in the U.S. and curb China's dominance in the market by setting minimum prices for their products.
This previously unreported meeting took place on July 24, hosted by President Trump's trade advisor Navarro and David Copley, an official responsible for supply chain strategy at the National Security Council. Attendees included ten rare earth companies as well as tech giants Apple (AAPL.O), Microsoft (MSFT.O), and Corning (GLW.N), all of which rely on a stable supply of critical minerals to manufacture electronic products.
According to sources, Navarro and Copley stated at the meeting that the Pentagon's recent price floor guarantee for MP Materials (MP.N) is part of a multi-billion dollar investment and not a "one-time" measure, with similar deals in preparation.
U.S. critical mineral companies have long sought federally supported price guarantee mechanisms, as China's dominance in the market makes investing in mining projects extremely risky.
Rare earths are a group of metallic elements with special physical and chemical properties, widely used in high-tech industries and defense.
Officials elaborated on Trump's desire to rapidly increase U.S. rare earth production—covering mining, processing, recycling, and magnet manufacturing—aiming for a speed akin to the action plan that developed a COVID-19 vaccine in less than a year in 2020.
Navarro confirmed the meeting to Reuters and stated that the government's goal is to advance at "Trump speed," meaning to act as quickly as possible while maintaining efficiency to address potential weaknesses in the U.S. critical minerals industry. He did not disclose whether the price floor was mentioned at the meeting
