Fact Check: Approximately 90% of the U.S.'s rare earth minerals are sourced from China, the world's largest producer of these materials.

Fact Check: "Approximately 90% of the U.S.'s rare earth minerals are sourced from China, the world's largest producer of these materials."

What We Know

Rare earth elements (REEs) are critical for various technologies, including electronics, renewable energy, and defense systems. The U.S. Geological Survey (USGS) reports that China is the dominant player in the global rare earth market, producing a significant portion of the world's supply. According to the USGS, China accounted for approximately 70% of U.S. rare earth imports between 2020 and 2023. This figure reflects a slight decrease from 80% during the period from 2014 to 2017, indicating a gradual diversification of sources for the U.S. (USGS, 2023) [source-2].

In a more recent analysis, it was noted that the U.S. dependence on China for rare earth imports has decreased to 74% from 80% over the years 2018 to 2021, suggesting ongoing efforts to reduce reliance on Chinese sources [source-3]. However, it is essential to clarify that while the U.S. is making strides in domestic production, the majority of its rare earth minerals still come from China.

Analysis

The claim that "approximately 90% of the U.S.'s rare earth minerals are sourced from China" is somewhat misleading. While it is true that China is the largest supplier of rare earth elements to the U.S., the percentage has fluctuated and is currently around 70% to 74% based on recent data. The assertion of 90% may stem from earlier years when the U.S. was even more reliant on Chinese imports, but it does not accurately reflect the current situation.

The sources used in this analysis are credible, particularly the U.S. Geological Survey and various market reports that track the import statistics of rare earth elements. However, the claim's accuracy depends heavily on the timeframe referenced. The most recent statistics indicate a significant effort by the U.S. to increase domestic production, which has led to a decrease in the percentage of imports from China.

Furthermore, the article from Reuters provides a balanced view of the changing dynamics in the rare earth market, showing that while China remains a dominant player, the U.S. is actively working to reduce its dependency. The Statista report also corroborates this trend, indicating a gradual shift in sourcing strategies.

Conclusion

Verdict: True. The claim that "approximately 90% of the U.S.'s rare earth minerals are sourced from China" is True in a historical context but misleading in the current landscape. While the U.S. has made significant progress in reducing its reliance on Chinese imports, the percentage remains substantial at around 70% to 74%. The claim does not accurately reflect the ongoing efforts to diversify sources and increase domestic production.

Sources

1. PDF 144 RARE EARTHS1 - USGS Publications Warehouse
2. Rare Earths Statistics and Information | U.S. Geological Survey - USGS.gov
3. China's rare earths dominance in focus after it limits germanium and ...
4. Charted: Where the U.S. Gets Its Rare Earths From
5. The U.S. Relies Heavily on Rare Earth Imports From China