US government accelerates strategy to reduce reliance on Chinese rare-earth magnets critical to motor and generator manufacturing.

The United States is stepping up efforts to reduce its dependence on China's rare earth magnets as global supply chains for critical minerals continue to expand. Beijing's dominance in the sector and its use of export controls during the 2025 trade dispute prompted Washington to strengthen domestic production and diversify supplies.

On July 20, President Donald Trump signed an executive order requiring defense contractors to source key minerals from the United States or allied countries, while limiting the Pentagon's ability to grant waivers to these requirements.

New rare earth discoveries in countries including Brazil and Vietnam are expected to broaden the global supply of these minerals, potentially reducing China's long-standing influence over the market.