Trump's rare-earth strategy shifting U.S. green tech

President Trump has vowed to cut into China’s overwhelming lead in producing critical minerals as part of his national security push, including a new supply chain proclamation Wednesday.

- BY EMILY FORGASH AND COCO LIU

CONCENTRATED bauxite and iron ore produced in 2025 at Yantai Port in China.

(CFOTO Getty Images)

In response, investors are pouring a record amount of money into U.S. startups, supporting an industry that also plays a key role in the energy transition.The minerals — a set of 17 metallic elements — are used in products as diverse as smartphones, electric vehicles and fighter jets. China controls roughly 60% of the world’s rare-earth mining output and more than 90% of the global refining capacity, according to an October report by the International Energy Agency. That leaves industries in the U.S. exposed to potential supply shocks.

Venture capitalists invested more than $628 million in U.S. startups working on rare-earth minerals in 2025, according to PitchBook data, accounting for 90% of all funding globally. That represents a nearly 3,000% jump compared with 2024 and doesn’t account for government deals, including the U.S. Defense Department’s $400-million equity investment in July into MP Materials Corp., a publicly traded rare-earth producer. Companies looking to buy rare earths are also showing increased interest in sourcing the materials at home. Five days after the Pentagon's investment, Apple Inc. agreed to buy $500 million of rare-earth products from MP Materials.

"Rare earths are top of mind right now,” said Zachary Bogue, co-founder and managing partner at DCVC, whose firm backed two U.S.-based rare-earth startups last year. “There's geopolitical tensions. The U.S. can not longer rely on China for rare earths and critical minerals.”