US Needs Rare Earths Strategic Stockpile to Support Industry Growth

Rare Earth Resources

Strategic Stockpile for Rare Earths Could Stabilize Industry

The United States requires a rare earths strategic stockpile to stabilize prices, attract investment, and secure domestic supply chains, according to Rare Earth Resources (RER). Speaking before the US House Committee on Small Business, RER chief executive Ken Mushinski emphasized that a rare earths strategic stockpile would provide a critical foundation for the country’s emerging industry.

Mushinski highlighted that smaller companies need stability to attract investors and secure long-term contracts. He stressed that the goal is not government handouts but an institutional framework that supports a credible business environment. RER is preparing to operate a $66mn demonstration plant in Upton, Wyoming, which will produce up to 10 metric tonnes of separated neodymium-praseodymium oxide, validating the company’s industrial-scale technology.

Refining Capacity More Urgent Than New Mines

Other experts at the hearing argued that refining and processing capacity must take precedence over opening new rare earth mines. Laura Stoy, founder of Rivalia Chemical, stressed that without refining facilities, US-produced concentrates will continue to be exported abroad, predominantly to China, which currently handles 99pc of global refining.

This reliance poses a strategic vulnerability, as China’s dominance in refining limits US capacity to control its rare earth supply chain. Expanding midstream processing infrastructure, therefore, is seen as critical to ensuring that rare earths mined in the US can be processed domestically, reducing dependence on external players.

The Metalnomist Commentary

A US rare earths strategic stockpile could transform industry stability by reducing price volatility and improving investor confidence. However, without simultaneous investment in refining and processing, stockpiling alone will not solve structural dependence on China. A coordinated strategy is needed to align mining, refining, and long-term supply security.