Rare Earths Are China’s Trump Card In The trade war — How The U.S. Is Trying To Fix That

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Rare earths refer to 17 elements on the periodic table whose atomic structure gives them special magnetic properties. Rare earth magnets power everything from electric vehicles and wind turbines to defense equipment, data centers and high-tech consumer electronics. The problem? The United States depends a great deal on China for these critical materials with China mining around 70% and processing around 90% of rare earths. This has made rare earths the most important bargaining chip in the trade war between the U.S. and China. Now, the U.S. is seeking to develop a domestic supply chain for rare earths. In July, the Department of Defense announced a $400 million investment in U.S. rare earth miner and producer MP Materials. The company owns the only operational rare earth mine in the country. Energy Fuels is also producing neodymium-praseodymium oxide (NdPr) material for use in permanent magnets at its White Mesa mill in Utah. Despite this push, experts say many hurdles remain if the U.S. wants to break its rare earth dependence on China. Chapters: 00:00 - 02:16 Introduction 02:17 - 04:18 China’s rare earth dominance 04:19 - 06:53 Political bargaining chip 06:54 - 12:24 Ramping up U.S. supply 12:25 - 15:00 Is U.S. independence possible? Produced and edited by: Magdalena Petrova Camera: Lucas Mullikin Animation: Jason Reginato Senior Director of Video: Jeniece Pettitt Additional Footage: Getty Images, MP Materials » Subscribe to CNBC: » Subscribe to CNBC TV: » Watch CNBC o