US Lawmakers Propose $2.5 Billion Agency for Rare Earths Production to Cut China Reliance

To beat China at its own game, the US is prepared to fight fire with fire. Bipartisan lawmakers have introduced a bold plan to pump billions into rare earths production, aiming to shatter Beijing's decades-long stranglehold on the minerals that power modern civilization.

US Rare Earths Production Bill 2026: A $2.5 Billion Strategic Move

A bipartisan group, led by Senators Jeanne Shaheen and Todd Young, proposed on Thursday the creation of a new agency backed by $2.5 billion. This agency's primary mission is to spur the domestic production of critical minerals and rare earths, ensuring the US isn't left vulnerable during geopolitical disputes.

The Pentagon hasn't been sitting idle, either. Over the past year, it's shelled out nearly $5 billion to secure access to these materials. Interestingly, the US government is taking a page out of China's playbook by taking equity stakes in mineral companies and guaranteeing commodity prices—a stark departure from traditional Republican free-market ideals.

Breaking the 90% Chokehold

China currently processes more than 90% of the world's critical minerals. This dominance became a major pain point during the trade war. Although President Donald Trump and Xi Jinping reached a one-year truce in October 2025, the US remains in a crunch to drastically reduce its dependency before the next escalation.

From mobile phones and electric vehicles to jet fighters and missiles, the stakes couldn't be higher. Lawmakers believe a more market-based approach, supported by this new $2.5 billion agency, will provide the long-term stability that reactive government spending cannot achieve alone.