US Unveils $3 Billion Critical Minerals Package as China Rare Earth Profits Surge

The United States has introduced a $3 billion critical minerals investment package aimed at strengthening domestic mining, battery, and processing firms to reduce reliance on China. Announced during a roundtable at the Department of State, the initiative includes a $1.4 billion loan for Sila Nanotechnologies, $1 billion for Ivanhoe Electric's Arizona copper mine, and funding for various other projects involving scandium, permanent magnets, bauxite, and graphite. A central component of this strategy is Project Crucible, a $7.4 billion integrated smelter in Tennessee led by South Korea's Korea Zinc. This project, supported by the US Departments of Defense and Commerce, is designed to produce 12 nonferrous metals and semiconductor grade sulfuric acid. US Commerce Secretary Howard Lutnick cited Korea Zinc as an example of how tariffs and incentives are successfully attracting foreign tech leaders to relocate manufacturing to the US to ensure national security. Simultaneously, China's rare earth producers are reporting strong financial performance despite these geopolitical tensions. China Northern Rare Earth, the nation's largest producer, expects first half net profits between 1.98 billion yuan and 2.06 billion yuan, while China Rare Earth Resources and Technology reported a net profit surge of 46.53 percent. Analysts attribute this growth to the rapid expansion of the AI supply chain and surging demand for hardware components. Center right sources frame these events as a strategic US effort to dismantle Chinese dominance over critical supply chains for the sake of national security, while other center right coverage emphasizes that China's rare earth industry remains highly profitable despite Western trade pressures.