Exclusive | Can the US and its allies break China’s grip on rare earths and AI technology?

July 22, 2026 - 04:51

In an exclusive interview, a senior US official outlined a sweeping strategy to reduce Western reliance on China for rare earth minerals and artificial intelligence technology. The official stressed that a piecemeal approach will not work, calling instead for a "whole-of-supply-chain" effort that spans mining, processing, and advanced manufacturing.

China currently controls roughly 60 percent of global rare earth mining and an even larger share of the refining capacity. These minerals are essential for making everything from electric vehicle motors to fighter jet guidance systems. On the AI front, Chinese firms have rapidly closed the gap with US leaders, raising concerns about both economic competition and national security.

The official acknowledged that breaking this dependence will take years and require deep cooperation among allies in Europe, Japan, South Korea, and Australia. Key steps include funding new mines in friendly countries, building domestic processing plants, and investing in research to find substitutes for the most critical materials.

Critics argue that past efforts to diversify supply chains have moved too slowly, and that China could retaliate by restricting exports. Still, the official expressed confidence that a coordinated push can succeed, especially as private companies see the strategic value of secure supply lines. The goal, the official said, is not to isolate China but to ensure that no single nation can hold the global economy hostage.