US to Build $12B Rare Earths Stockpile to Reduce China Dependence

The US is preparing to establish a $12 billion rare earths stockpile to reduce reliance on China. Under the plan, $1.7 billion will come from private investment, while the remaining $10 billion will be financed via a loan from the US Export-Import Bank (EXIM)—a record-breaking facility expected to be approved and disbursed starting February 2, 2026. This initiative targets strategically vital industries including automotive, digital services, and defense. It comes amid growing concern in Washington over China’s dominance across the rare earths value chain—from mining and processing to integration into high-tech materials. Beijing has previously signaled willingness to use its control over industrial magnets—key components in rare earth applications—as leverage, notably during trade tensions with Japan and in negotiations with the US, especially following new tariffs announced by former President Donald Trump last April.