Core Insights - China has escalated its rare earth control strategy to a "technical stranglehold" mode, restricting not only the sale of rare earths but also the technology and equipment for mining, refining, and recycling [2][5] - The global rare earth landscape has shifted, with China now holding less than 40% of global reserves, while the U.S. has significant mining capabilities and can source from allies like Canada and Australia [2][3] - The U.S. struggles to convert raw materials into high-tech products due to a lack of necessary technology and expertise, with 90% of refining capacity and 70% of patents concentrated in China [2][3] Industry Impact - The new regulations significantly impact U.S. military operations, as 77% of critical minerals for the military rely on China, with the Navy exceeding 90% [3] - The U.S. has invested $10 billion to develop its own supply chain, but establishing factories will take years, and environmental protests pose additional challenges [3][5] - China's control over the entire technology chain for rare earths, from mining to recycling, has been in place since 2001, with recent expansions in October to include all core technologies [5][9] Global Reactions - The global industry is reacting with urgency, as Germany and Canada are forming partnerships for mineral cooperation, while Japan is actively seeking new sources of rare earths [7] - Companies in Europe and the U.S. are accelerating research into alternative technologies to reduce dependence on Chinese rare earths, but experts believe it will take at least a decade to achieve significant progress [7][9] Technological Advantage - China possesses advanced technologies that reduce rare earth processing costs by 30% and employs green smelting processes, enhancing its competitive edge [9] - Major automotive companies like Ford and General Motors have received temporary export licenses, indicating a potential for collaboration amidst the restrictions [9]