The United States is taking a major step toward strengthening its domestic supply chain for critical minerals, with the U.S. Army announcing landmark agreements with four mining and materials companies to build mineral processing facilities on military bases across the country.
The initiative, announced by the Pentagon, represents the first program of its kind under the Trump administration aimed at reducing America’s dependence on foreign sources for strategically important minerals that are essential for defense, clean energy, and advanced manufacturing.
Four Companies Selected
The U.S. Army has signed agreements with:
REalloys Inc. – Rare earth minerals processing
Titan Mining Corp. – Graphite processing
ioneer Ltd. – Lithium processing
EnergyX – Boron processing
These facilities will process minerals that are considered vital to national security, supporting everything from military weapons systems and electronics to electric vehicle batteries and renewable energy technologies.
Strengthening America’s Supply Chain
Critical minerals such as rare earth elements, lithium, graphite, and boron play an increasingly important role in modern industries. However, the United States has long relied on imports—particularly from China—for much of its processing capacity.
By locating processing plants on military installations, the Pentagon aims to accelerate domestic production while enhancing the resilience of U.S. supply chains. The strategy also aligns with broader efforts to ensure reliable access to materials needed for defense readiness during periods of geopolitical uncertainty.
Why It Matters
The global competition for critical minerals has intensified as countries race to secure resources needed for electric vehicles, semiconductors, renewable energy infrastructure, and advanced defense technologies.
The Army’s new partnerships could help:
Reduce dependence on foreign mineral processing.
Strengthen U.S. national security.
Support domestic manufacturing and job creation.
Build a more resilient supply chain for emerging technologies.
Increase America’s competitiveness in the global critical minerals market.
A Strategic Investment
While the agreements focus on processing rather than mining, experts view processing capacity as one of the most significant bottlenecks in the global critical minerals supply chain. Expanding domestic processing capabilities could allow the United States to capture more value from both domestic and allied mineral resources.
As demand for critical minerals continues to grow, this first-of-its-kind initiative signals a long-term commitment to building a secure and independent supply chain that supports both economic growth and national defense.
Looking Ahead
The Pentagon’s partnerships with REalloys, Titan Mining, ioneer, and EnergyX mark an important milestone in America’s strategy to secure access to critical minerals. If successful, the initiative could serve as a model for future public-private partnerships aimed at strengthening the nation’s industrial base and reducing strategic vulnerabilities in global supply chains.
With geopolitical competition intensifying and demand for critical minerals expected to rise sharply over the coming decades, investments like these may become increasingly central to U.S. economic and national security policy.
The Democratic Republic of Congo (DRC) is no longer content with being merely the world’s largest cobalt supplier. Through a combination of export controls, strategic partnerships, and geopolitical repositioning, Kinshasa is transforming its role from resource provider to market maker.
The implications extend far beyond commodity markets. Congo’s evolving cobalt strategy is influencing global supply chains, altering China’s dominance in critical minerals, and creating new opportunities for Western investors seeking secure access to strategic resources.
From Price Taker to Price Setter
For years, Congo’s vast cobalt reserves fueled global battery production while the country remained vulnerable to commodity price cycles and foreign influence. That dynamic is changing.
Since imposing cobalt export restrictions in early 2025, Congo has steadily tightened control over the flow of the metal. A complete export ban eventually gave way to a quota system, but the impact on global supply has been profound.
China, historically the dominant buyer of Congolese cobalt, has seen imports collapse. Customs data show that Chinese imports of Congolese cobalt intermediates during the first four months of 2026 were only a fraction of the volumes recorded during the same period a year earlier.
The result has been a dramatic tightening of supply. Cobalt prices have more than doubled from pre-restriction levels, while unusual pricing patterns have emerged throughout the supply chain. Cobalt hydroxide—the primary form exported from Congo—has at times traded at prices equal to or even above refined cobalt metal, highlighting growing concerns about access to raw material.
What initially appeared to be a temporary supply disruption increasingly looks like a structural shift. Market participants are beginning to attach a premium to cobalt sourced from Congo, reflecting both scarcity and strategic importance.
Reducing Dependence on China
Perhaps the most significant aspect of Congo’s strategy is its attempt to diversify away from overwhelming dependence on Chinese operators.
China has spent decades building a dominant position in Congolese mining and refining. Chinese companies control many of the country’s largest cobalt and copper assets, while Chinese refiners process much of the world’s cobalt supply.
Now, however, Kinshasa appears determined to rebalance those relationships.
Recent developments suggest growing momentum behind Western investment initiatives. U.S.-based critical minerals platform Virtus Minerals recently acquired the copper and cobalt assets of Chemaf, positioning itself to revive operations that have faced years of uncertainty.
At the same time, Congo’s state-backed Entreprise Générale du Cobalt (EGC) has entered into agreements with commodity trader Trafigura and U.S. startup EVelution to support a proposed cobalt refinery in Arizona. Such projects could create direct links between Congolese mines and American manufacturing, reducing reliance on Chinese processing capacity.
These developments align closely with broader U.S. efforts to secure critical mineral supply chains amid intensifying competition with China.
Infrastructure Creates New Options
Infrastructure is playing a crucial role in Congo’s westward pivot.
The Lobito Atlantic Railway, backed by Western governments and investors, is emerging as a strategic alternative export route. Connecting the Congolese copper belt to Angola’s Atlantic port of Lobito, the corridor provides access to global markets without relying exclusively on transport networks historically aligned with Chinese interests.
The railway has become a symbol of a larger geopolitical contest over critical minerals. Control over extraction matters, but so does control over logistics, processing, and market access.
For Western investors, the corridor offers a practical pathway for moving minerals to Europe and North America. For Congo, it provides leverage and flexibility.
Solving the Artisanal Mining Challenge
Despite these opportunities, one major obstacle remains: artisanal and small-scale mining (ASM).
Artisanal miners produce a significant share of Congo’s cobalt, but the sector has long been associated with unsafe working conditions, child labor concerns, and informal trading networks. These issues have discouraged many Western buyers from sourcing Congolese cobalt directly.
The government understands that expanding access to Western markets requires stronger assurances around responsible sourcing.
To address this challenge, EGC has partnered with commodity trader Mercuria to establish what is being described as a “gold standard” framework for ethical artisanal cobalt production at the Kasulo mining site.
Success is far from guaranteed. Previous efforts to formalize the artisanal mining sector have delivered mixed results. However, creating a transparent and verifiable supply chain is essential if Congo hopes to attract Western customers seeking ethically sourced critical minerals.
The stakes are high. Without credible solutions, concerns over “blood cobalt” could continue limiting market access regardless of supply shortages.
Growing Leverage in a Tightening Market
Congo’s position is being strengthened by supply disruptions elsewhere.
Several competing sources of cobalt face challenges. Canadian producer Sherritt International’s refining operations have come under pressure from U.S. sanctions affecting its Cuban partnerships. Madagascar’s Ambatovy nickel-cobalt project suffered cyclone-related disruptions and is undergoing ownership changes. Meanwhile, Indonesian producers are grappling with tighter mining quotas and processing constraints.
These developments further increase Congo’s influence over a market where it already accounts for more than 70% of global mine production.
In other words, there are few realistic alternatives.
A New Strategic Role
The broader story is not simply about higher cobalt prices. It is about a country leveraging its resource dominance to reshape its geopolitical position.
By restricting exports, encouraging Western investment, developing alternative infrastructure, and attempting to formalize artisanal production, Congo is seeking greater control over both its resources and its future.
Whether the strategy succeeds remains uncertain. Balancing relationships with China while attracting Western capital will require careful diplomacy. Reforming the artisanal mining sector will be difficult. And sustaining investor confidence will depend on political stability and regulatory consistency.
Yet one thing is increasingly clear: Congo is no longer just supplying the global cobalt market. It is actively redefining it.
As demand for batteries, electric vehicles, defense technologies, and advanced electronics continues to grow, Congo’s decisions will have an outsized influence on the future of critical minerals. The country is emerging not merely as a producer of cobalt, but as one of the most important strategic players in the global race for resources.
This version is designed for a business, commodities, mining, or geopolitical affairs audience and is fully original rather than a rewrite of the Reuters text.
The global race for critical minerals has entered a new and potentially volatile chapter. China has imposed new restrictions on exports of key rare-earth materials to major U.S. companies, directly targeting efforts by Washington to rebuild domestic supply chains for strategically important magnets and advanced technologies.
The decision signals a significant escalation in the ongoing competition between the world’s two largest economies and highlights how critical minerals have become a powerful geopolitical tool.
Why Rare Earths Matter
Rare-earth elements are essential ingredients in a vast array of modern technologies. They are used in:
Electric vehicles
Wind turbines
Military drones
Advanced defense systems
Artificial intelligence hardware
Consumer electronics
Industrial machinery
While many countries possess rare-earth deposits, China dominates the global processing and refining industry. It supplies approximately 90% of the world’s light rare earths and refines more than 98% of heavy rare earths—materials that are particularly important for high-performance magnets and advanced technologies.
This dominance has given Beijing considerable leverage over global supply chains.
China’s New Restrictions
China’s Ministry of Commerce announced that ten American companies will face new restrictions on purchasing certain dual-use products from Chinese suppliers. Among the affected organizations are two of the most important players in the U.S. rare-earth sector:
MP Materials
USA Rare Earth
Both companies are central to the U.S. government’s strategy to reduce dependence on Chinese supplies.
The restrictions cover several critical rare-earth metals, including heavy rare earths such as dysprosium and terbium. These materials are essential for producing heat-resistant magnets used in electric motors, automotive systems, military applications, and industrial equipment.
A Blow to U.S. Supply Chain Ambitions
The timing is particularly significant.
Over the past several years, the U.S. government has invested heavily in rebuilding domestic rare-earth production capabilities. The Department of Defense and other federal agencies have directed hundreds of millions of dollars toward developing mining, refining, and magnet manufacturing infrastructure.
MP Materials operates the Mountain Pass mine in California, the largest rare-earth mining operation in the United States. The company is also constructing magnet manufacturing facilities in Texas designed to serve both commercial and defense customers.
Meanwhile, USA Rare Earth has been rebuilding domestic manufacturing capacity in Oklahoma and pursuing international partnerships to secure alternative supplies of critical minerals.
The new Chinese restrictions create additional obstacles for these efforts by limiting access to the materials needed during the industry’s transition period.
The Dysprosium Challenge
One of the most pressing concerns involves dysprosium, a heavy rare-earth element used to improve magnet performance under high temperatures.
Industry data indicates that Chinese shipments of dysprosium to the United States have effectively stopped since April 2025. The material is crucial for components found in:
Power steering systems
Braking systems
Electric motors
Aerospace applications
Defense technologies
Manufacturers can partially substitute dysprosium with terbium, but supplies of terbium have also become extremely limited.
Without reliable access to these materials, scaling domestic magnet production becomes significantly more difficult.
Global Concerns Growing
The latest move comes as governments worldwide seek to diversify critical mineral supply chains.
At the recent G7 summit, leaders pledged to reduce dependence on any single supplier and outlined a goal that no more than 60% of rare-earth imports should come from one country by 2030.
However, achieving that objective will be challenging. Building new mines, processing facilities, and refining operations requires years of investment, environmental approvals, technical expertise, and substantial capital.
Even promising projects in Australia, Brazil, Canada, and the United States remain far from matching China’s current production capacity.
Trade Tensions Could Reignite
The restrictions also threaten to reignite trade tensions between Washington and Beijing.
Although previous diplomatic discussions included conversations about maintaining access to critical minerals, progress has been limited. China’s latest action demonstrates that rare-earth exports remain a powerful strategic lever that can be deployed during periods of economic or political disagreement.
For U.S. policymakers, the message is clear: securing resilient supply chains for critical materials has become a national security priority rather than simply an economic objective.
Looking Ahead
China’s decision underscores a broader reality shaping the global economy. Control over critical minerals is increasingly becoming as important as control over energy resources was in previous decades.
As nations compete to secure supplies for electric vehicles, renewable energy, advanced computing, and defense systems, rare earths are likely to remain at the center of geopolitical negotiations and trade disputes.
For American manufacturers, the challenge now is accelerating efforts to develop alternative sources while navigating a market where China continues to hold overwhelming influence.
The outcome of this struggle may help determine not only the future of global trade but also which nations lead the next generation of technological innovation.
This version is optimized for a business, technology, or geopolitics audience and is written to avoid copyright concerns by presenting original analysis and structure rather than reproducing the source article.
As the world accelerates toward electrification and clean energy, rare earth elements (REEs) have become some of the most strategically important minerals on the planet. They are essential components in electric vehicles, wind turbines, smartphones, computers, advanced defense systems, and countless other technologies that power modern life.
A recent study by researchers at the University of Michigan suggests that North America may have the resources needed to build a more self-reliant rare earth supply chain—provided the right economic and policy conditions are in place.
Growing Demand for Critical Minerals
Global demand for rare earth elements is expected to rise significantly over the coming decades. Researchers estimate that worldwide demand will increase from approximately 91 kilotons in 2024 to 123 kilotons by 2030 and 150 kilotons by 2040.
Today, however, the global rare earth industry remains heavily concentrated. China accounts for roughly 70% of global rare earth mining, while the United States contributes only about 11%. This imbalance has raised concerns about supply chain security, economic competitiveness, and national defense readiness.
Assessing North America’s Resource Potential
The University of Michigan team evaluated 28 rare earth deposits across North America, analyzing factors such as ore tonnage, mineral grade, and total rare earth oxide content. Their findings indicate that North America possesses enough rare earth resources to satisfy U.S. demand for decades.
The challenge is not the availability of resources, but whether those resources can be extracted economically.
Many North American deposits are lower in quality than leading operations in China and Australia. In addition, some deposits contain elements such as thorium, a naturally occurring radioactive material that can increase mining and disposal costs.
Despite these challenges, researchers believe several deposits could support a competitive domestic supply chain, particularly if governments provide targeted support during the industry’s development phase.
Light vs. Heavy Rare Earth Elements
Rare earth elements are typically divided into two categories: light rare earths and heavy rare earths.
Light rare earth elements are more abundant and are widely used in magnets, batteries, electronics, and renewable energy technologies. Heavy rare earth elements are less common but highly valuable because they improve the performance and heat resistance of high-strength magnets.
The study found a geographic advantage across North America:
The United States holds substantial deposits of light rare earth elements.
Canada possesses many of the region’s most significant heavy rare earth deposits.
This distribution suggests that a coordinated North American strategy could strengthen supply security while leveraging the strengths of both countries.
Why Domestic Mining Matters
Rare earth elements are classified as critical minerals because they support industries vital to economic growth, clean energy, and national security. Supply disruptions can have far-reaching consequences, affecting everything from electric vehicle manufacturing to advanced military technologies.
Historically, the United States mined rare earths at California’s Mountain Pass mine, but much of the industry’s processing capacity eventually shifted overseas. Today, experts argue that rebuilding domestic mining alone is not enough. North America must also develop processing, refining, and manufacturing capabilities to create a fully integrated supply chain.
The Path Forward
The study concludes that North America has the geological resources needed to establish a more resilient rare earth industry. However, success will depend on balancing economic viability, environmental responsibility, and strategic investment.
As demand for electric vehicles, renewable energy systems, and advanced technologies continues to grow, developing a secure domestic supply of rare earth elements could become one of the most important industrial challenges—and opportunities—of the coming decades.
The U.S. has made progress in its push to prise Congo’s strategic minerals from China’s orbit, but conflict, contested licences and compliance demands are still slowing Washington’s advance into a region its rival dominates, diplomats and industry officials said.
Democratic Republic of Congo, which hosts the world’s largest cobalt supply and rich copper and lithium reserves, is central to the U.S. push to cut the West’s reliance on China for rare minerals.
One U.S. diplomat said Kinshasa is deliberately slowing new deals to push Washington to increase pressure on M23 before any further steps are taken. Reuters could not independently verify the claim.
The Congolese government did not immediately respond to requests for comment. On background, a senior government official described the allegations as “speculation”.
“The agreement has its own rhythm: a period for receiving offers, a period for negotiation,” the official said. Rwanda, which denies backing M23, did not immediately respond to requests for comment.
The U.S. State Department told Reuters the U.S. remains “deeply concerned” by violence in eastern Congo and is pushing regional partners to reinforce the ceasefire, urging Rwanda to end M23 support and withdraw in line with December’s peace deal.
The department said Washington hopes to see swift progress on key deals, including a proposal for Glencore to sell copper and cobalt assets to the U.S.-backed Orion consortium, U.S.-based Virtus Minerals’ bid for Congo-focused Chemaf, and the extension of the Lobito Corridor railway line.
Kinshasa’s inclusion on the shortlist of the Rubaya mine, which supplies about 15% of global coltan and sits under M23/AFC control, signals Congo wants stronger U.S. action on M23, said Joshua Walker of NYU’s Congo Research Group.
Investment is unlikely while the group holds territory, he said.
U.S. influence on security has already been seen at some mines. Alphamin Resources, opens new tab restarted its Bisie tin mine only after U.S. diplomatic pressure helped ease fighting in territory around the site, though it warns that renewed clashes could threaten access and operations.
Note: Canada is a resource-rich country. Canada does not have to go to another continent for critical mineral. Canada needs investment and technology development (refining and recycling). Bring the investment to Canada.
LAGOS, May 26 (Reuters) – Nigeria is set to commission two major lithium processing plants this year, the country’s mining minister announced on Sunday, marking a shift from raw mineral exports towards adding value domestically.
The facilities, largely funded by Chinese investors, could help transform Nigeria’s vast mineral wealth into jobs, technology, and manufacturing growth within the country. Mining Minister Dele Alake said a $600 million lithium processing plant near the Kaduna-Niger border is slated for commissioning this quarter, while a $200 million lithium refinery on the outskirts of Abuja is nearing completion. Two additional processing plants are expected in Nasarawa state, which borders the capital Abuja, before the third quarter of 2025, the minister said. “We are now focused on turning our mineral wealth into domestic economic value – jobs, technology, and manufacturing,” Alake said. Over 80% of the funding for the four facilities has been provided by Chinese firms, including Jiuling Lithium Mining Company and Canmax Technologies, according to separate announcements by governors of the states where the plants are located.
Yes, Canada is considered a resource-rich country. It has abundant natural resources, including:
Energy Resources:
Oil and Natural Gas: Canada has some of the largest reserves of oil in the world, particularly in the oil sands of Alberta. It is a major exporter of oil and natural gas, especially to the United States.
Hydroelectric Power: Canada is a leader in hydroelectricity production, with large dams and water resources, especially in provinces like Quebec and British Columbia.
Minerals and Metals:
Gold, Silver, and Platinum: Canada has significant reserves of precious metals, making it one of the largest producers of gold and other precious metals.
Nickel, Copper, and Zinc: The country is a leading producer of these metals, which are essential for various industries, including manufacturing and electronics.
Uranium: Canada is one of the world’s top producers of uranium, used in nuclear power generation.
Forests:
Canada has vast forest resources, making it one of the largest producers of timber and paper products. The forest industry is especially important in provinces like British Columbia and Quebec.
Agricultural Resources:
Canada is a major producer of wheat, canola, and other crops. It also has extensive livestock farming, including cattle and poultry.
Freshwater:
Canada holds around 20% of the world’s freshwater supply, making it an important resource for both domestic use and potential global trade.
These resources contribute significantly to Canada’s economy, especially through exports, and help maintain its position as one of the world’s wealthiest nations in terms of natural wealth
NEW DELHI: India has reached out to key critical mineral producers to bring in processing technology into the country, officials said. The move comes close on the back of the government rolling out auctions of critical mineral mines.
“Talks are on with the United States (US), Australia, and United Kingdom (UK), South Korea, and Japan for processing technology. Brazil and Argentina are also positive about collaborating with India,” a senior mines ministry official told ET. According to another official aware of the plan, agreements with countries are being lined up and will soon be signed.
While India is going ahead with auction of mines holding critical minerals, there are no facilities for their beneficiation.
“We want to target India’s first critical mineral beneficiation and processing plant in the next 3-5 years,” the official quoted above said. “We want to ensure that development of critical mineral processing and extraction happen in parallel.”
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