Interesting tech this is, if they pull it off this is potentially a game changer!
‘Pentagon isn’t just funding, it’s market-making’: US-China’s rare earths race heats up
The US, in its close trade and economic rivalry with China, is pioneering membrane tech that could make Beijing’s rare earths moat redundant.
Business Today Desk
- Updated Oct 31, 2025 12:45 PM IST
US-China's rare earths race speeds up, Washington doubles down on funding and research
With two of the leading economies of the world basing their trade talks over rare earths, it is a fight to the finish over who has the upper hand on the much in-demand metals. Is the solution then to move away from the dependence on rare earths, leapfrog into the future with some other element entirely? The US appears to think so, while it bids its time.
As highlighted by geoeconomic analyst and engineer, Tanvi Ratna, the US, in its close trade and economic rivalry with China, is pioneering membrane tech that could make Beijing’s rare earths moat redundant. “The US has quietly built what I call an Acceleration Stack in Rare Earths — to not just compete with, but leapfrog China’s entire capability chain. If its 4 levers hold, America could hit defence-critical rare-earth independence by 2030, five years earlier than estimated,” she said.
WHAT IS THE US DOING?
“The US is quietly innovating behind the loud theater around China & rare-earths. Instead of using decades of chemistry fine tuned by the Chinese, it’s pioneering membrane tech that could skip 20 years of chemical grind. If it scales, Beijing’s moat disappears overnight,” said Ratna.
In other words, the US aims to bypass the rather difficult process of extraction and purification of rare earths with membrane tech. US researchers have developed artificial membrane channels that closely mimic the selective transport mechanisms of biological transport proteins. These tiny pores, embedded in membranes, serve as controlled roadways for ions, enabling the selective transfer of ions with specific characteristics and blocking others. Selectivity at this level is considered essential for key biological processes, including neural activity in brains.
The artificial channels utilise a modified pillararene structure to enhance binding capabilities, leading to improved selectivity. This system effectively transports middle rare earth elements, specifically europium (Eu*) and terbium (Tb*), while preventing the passage of other common ions such as potassium, sodium, and calcium, as per the research published in ACS Nano.
Meanwhile, the US Department of Defence has given Ucore Rare Metals – that is developing rare earth processing technology to break China’s control over the metals – a grant of $18.4 million, apart from the Canadian $15.5 million it raised in funding, to build the first commercial plant in Louisiana, targeting mid-2026 production. The company uses RapidSX technology instead of conventional solvent extraction, requiring one-third space and far lower costs. Ratna said Ucore has processed 4,000 tons already.
“The Pentagon isn’t just funding – it’s market-making. A 10-year price floor & guaranteed offtake for MP Materials turned rare earths into an asset class. Industrial policy as capital structure – Washington learned from Wall Street,” she said.
In her Substack, Tanvi reasoned: “These technologies suggest that the US may not need to “catch up” in the traditional sense. If processes like RapidSX and membrane separation mature together, they could skip 20 years of solvent-extraction grind — compressing a generation of industrial capability into a few years of scaling.”
Apart from science and money levers, Tanvi Ratna also pointed at the strategies of substituting rare earths where possible and a circular economy to recycle and reuse existing materials – effectively “shortening the track” in the race for supply chain security rather than just outproducing competitors.
THE US BIDDING ITS TIME
US Treasury Secretary Scott Bessent said that China will delay new, stricter export controls on rare earth materials for a year while the policy is re-examined. Speaking after two days of trade negotiations with senior Chinese officials in Malaysia, Bessent stated that the Chinese "had threatened to put a global export licensing regime, and I believe that they are going to delay that for a year while they re-examine it." The talks included Chinese Vice Premier He Lifeng and come ahead of a scheduled meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea later this week.
Bessent stressed that President Trump’s threat of imposing 100 percent tariffs if the export controls were enforced played a decisive role in the negotiations. He explained, "the president had given me maximum leverage when he threatened 100 percent tariffs if the Chinese impose their rare earth global export controls. So, I think we have averted that. So, the tariffs will be averted." Bessent described the outcome as a significant achievement, saying, "I think we reached a substantial framework for the two leaders."
When asked by Fox News what happens at the end of the one year, Bessent said, “We’ll be back at the table and we’ll get another delay.”
