On May 1, 2025, Ford's Chicago plant was forced to halt production for a week due to a lack of special rare earth magnets. This was caused by China introducing export restrictions in April on seven rare earth metals, which are vital for manufacturing powerful magnets used in everything from smartphones to cars.
This problem affected other manufacturers worldwide. China implemented an export licensing system, prolonging supply times and threatening the operations of major corporations. The situation became part of the ongoing geopolitical confrontation between China and the United States.
On February 2, 2026, Donald Trump announced the launch of the US Strategic Critical Minerals Reserve—Project World. Industry giants joined the partnership, with project funding reaching $12 billion. The main goal is to build up domestic stocks of key minerals and reduce dependence on Chinese suppliers.
This initiative copies the Chinese model: the government invests in private companies, but competition still exists in the market. The US aims to repeat the logic of the Strategic Petroleum Reserve established in the 1970s following the oil embargo.
America's dependence on Chinese rare earth elements is still significant, with forecasts expecting it to be 91% in 2030. Meanwhile, China continues to buy mineral deposits worldwide, strengthening its market position, including major investments in Africa.
The new US project demonstrates that critical minerals are recognized as a national security issue, along with oil and weapons. This is an investment in the future of American industry, responding to geopolitical pressure. While the government organizes the reserves, private companies remain responsible for production, preserving market competition.
