Developing domestic critical mineral resources and refining to reduce foreign dependence
US Critical Minerals Build-Out
The strategic imperative to develop and refine domestic critical mineral resources in the United States has gained unprecedented momentum in 2026, fueled by escalating geopolitical tensions and accelerated military modernization by China. No longer merely an economic or environmental concern, critical mineral supply chain security has become a core national security priority—one that demands urgent industrial action, regulatory agility, and sustained bipartisan political will.
Escalating Geopolitical Pressures Elevate Critical Minerals to National Security Priority
The June 2026 Pentagon report issued a sobering assessment of China’s rapid military modernization, warning that it is eroding U.S. defense technological advantages that have long been taken for granted. This evolution intensifies concerns over the vulnerability of global critical mineral supply chains, many of which remain heavily dependent on Chinese-controlled sources and processing facilities.
A senior Department of Defense official encapsulated the growing consensus:
“Our technological and operational superiority is fundamentally linked to uninterrupted access to critical minerals essential for everything from missile guidance systems to next-generation microelectronics.”
This stark reality has galvanized a bipartisan political and industrial surge aimed at shrinking U.S. dependence on foreign sources, particularly China, whose increasingly assertive export policies and geopolitical posture pose direct risks to U.S. defense readiness and technological sovereignty.
Breakthroughs in Domestic Critical Mineral Resources and Processing
Utah’s Halloysite-Hosted Ion-Adsorption Rare Earth Element Deposit
One of the most promising recent developments is the December 2025 confirmation of a halloysite-hosted ion-adsorption rare earth element (REE) deposit near Provo, Utah. Geological surveys by the Utah Industrial Advisory Council have identified the deposit as one of the richest and most accessible REE resources in North America.
Key features that make this deposit a game changer include:
- Ion-adsorption clay composition enabling environmentally sustainable extraction techniques that avoid the damaging chemical leaching and waste typical of traditional hard-rock mining.
- A diverse suite of rare earth elements critical to defense and clean energy sectors, including neodymium and dysprosium, which are essential for electric vehicle motors, wind turbine magnets, and advanced radar systems.
- Accelerated permitting and increased federal and state funding aimed at rapidly unlocking the deposit’s strategic and economic potential.
This discovery significantly mitigates U.S. vulnerability to Chinese supply restrictions and aligns with broader commitments to sustainable resource development.
Korea Zinc’s $7.4 Billion Tennessee Refining Complex
Complementing upstream resource advances, Korea Zinc’s ambitious $7.4 billion refining complex near Knoxville, Tennessee, is poised to revolutionize America’s downstream processing capacity. Slated for operation by 2028, the facility will enable the U.S. to process raw critical minerals domestically into high-purity metals vital for defense, automotive, and clean energy industries.
Highlights of the Tennessee refinery project include:
- Strong bipartisan political backing, with prominent endorsements, including from former President Donald Trump, who framed it as essential to economic independence and national strength.
- Deployment of state-of-the-art, environmentally friendly refining technologies that minimize emissions, toxic waste, and water consumption.
- Creation of thousands of skilled manufacturing jobs, reviving the Appalachian regional economy and invigorating domestic supply chains.
- A strategic pivot toward vertical integration in critical minerals, reducing historic reliance on Asian refining hubs.
This facility not only enhances industrial capacity but also represents a geopolitical statement of intent—asserting U.S. strategic autonomy in a sector long dominated by foreign actors.
Defense Sector Resilience and Lessons from the 2025 Rare Earth Supply Disruptions
Despite China’s 2025 export curbs on rare earths, the U.S. defense industry managed to avert critical shortages through a multifaceted strategy, as detailed in The New York Times:
- Proactive stockpiling and inventory management allowed defense contractors to weather immediate shortages, buying vital time.
- Diversification of supply chains via accelerated partnerships with allied producers in Australia and Canada reduced reliance on China.
- Increased investment in recycling and substitution technologies helped mitigate demand for scarce elements.
- Close coordination between the Department of Defense and industry ensured rapid identification and resolution of supply bottlenecks.
While these adaptive measures demonstrated resilience, they also starkly highlighted the urgent need to build robust domestic upstream and downstream capabilities to prevent future vulnerabilities.
Policy Continuity and Expanding Momentum: From the Trump Administration to Today
The current surge in critical mineral development builds on policy foundations laid during the Trump administration. Early efforts focused on:
- Rebuilding the U.S. supply chain for critical minerals, including efforts to streamline permitting and incentivize private-sector investment.
- Establishing the National Network for Critical Mineral Resilience (N3), which coordinated federal resources to accelerate mining, refining, and recycling projects.
- Promoting early-stage international cooperation with allies to diversify supply sources.
This continuity underscores a bipartisan recognition across successive administrations that securing critical minerals is indispensable for national security and economic competitiveness.
A Whole-of-Government, Bipartisan Strategy
The U.S. government’s comprehensive response to critical mineral challenges includes:
- Streamlined permitting and regulatory reforms that balance environmental safeguards with expedited project approvals.
- Expanded financial incentives such as tax credits, loan guarantees, and direct grants to stimulate private investment.
- Enhanced workforce development programs, partnering federal agencies, technical schools, and industry to address acute labor shortages in mining, refining, and manufacturing.
- Strengthened international partnerships with Canada, Australia, and the EU to promote supply diversification, technology sharing, and joint innovation.
Senator Bill Hagerty summarized this unified approach:
“Critical minerals are no longer just commodities; they are pillars of our national defense and economic future.”
Market Dynamics and Persistent Challenges
Investor confidence has surged, buoyed by policy support and the tangible progress of projects like Utah’s halloysite deposit and the Tennessee refinery. Nevertheless, significant challenges remain:
- Permitting bottlenecks persist in some states and local jurisdictions despite reforms.
- The scaling of refining and manufacturing capacity must accelerate sharply to satisfy rising demand from electric vehicles, defense, and technology sectors.
- Acute workforce shortages in specialized mining and metallurgical skills require sustained investment and educational outreach.
- Ongoing risks from China’s opaque export controls and potential supply restrictions continue to inject volatility and underline the urgency of domestic capacity building.
- Maintaining robust allied coordination remains essential as geopolitical tensions and supply chain uncertainties evolve.
Broader Strategic Implications: Resource Sovereignty as a Pillar of National Power
The accelerated development of domestic critical minerals carries implications well beyond raw resource extraction:
- National Security: Ensures uninterrupted access to materials vital for cutting-edge military technologies and strategic deterrence.
- Economic Competitiveness: Fuels innovation and growth in emerging industries such as electric vehicles, semiconductors, and renewable energy.
- Environmental Responsibility: Enables resource development under stringent environmental and labor standards, providing a sustainable alternative to some foreign sources.
- Job Creation and Regional Revitalization: Generates thousands of skilled jobs and revitalizes communities across multiple states, particularly in historically underdeveloped regions.
Current Status and Outlook
As of mid-2026, the United States stands at a critical juncture in securing its critical mineral future. The Utah halloysite-hosted REE deposit and Korea Zinc’s Tennessee refining complex exemplify tangible, strategic progress supported by bipartisan political will and comprehensive policy frameworks. The defense industry’s adept navigation of past supply disruptions underscores growing resilience, but the path ahead demands:
- Continued urgency and industrial scale-up
- Regulatory agility and streamlined permitting
- Robust workforce development
- Strengthened international cooperation
Success in these areas will be decisive for maintaining U.S. technological innovation, economic strength, and strategic independence in an era where critical minerals have emerged as a strategic axis on par with energy and technology—where resource sovereignty equals national power and security.