US government confirms comprehensive actions on rare earths

The US government is moving aggressively to build out domestic rare earth production, with Interior Secretary Doug Burgum confirming that actions are being taken “across the board” on these strategically vital materials. The push comes as Washington confronts an uncomfortable reality: China controls roughly 95% of global heavy rare earth output, and the US imports nearly all of its critical mineral needs.

What’s actually happening

The federal response is multi-pronged and, by government standards, moving fast. The Trump administration signed executive orders in 2025 specifically aimed at accelerating rare earth production and established the National Energy Dominance Council, or NEDC, chaired by Burgum himself.

The NEDC has set ambitious internal timelines. Project identification is targeted within 10 days, and site leasing within 30 days.

On the financial side, the Department of Energy has announced a $134 million funding allocation dedicated to strengthening domestic rare earth supply chains.

A January 2026 White House initiative adds another lever: the potential imposition of tariffs on processed critical minerals and their derivatives if international agreements fail to materialize.

Meanwhile, the permitting process for mining and processing on federal lands is being expedited.

The geology and the partnerships

One project getting particular attention is the Sheep Creek deposit in Montana. It boasts the highest-grade rare earth concentrations in the US at 90,000 parts per million, alongside valuable co-products like gallium, scandium, and strontium. The site is being developed in partnership with Idaho National Laboratory, one of the DOE’s premier research facilities.

What this means for investors

The tariff threat on processed critical minerals adds another variable. If enacted, it could raise costs for US manufacturers that currently rely on Chinese-processed materials in the short term, while creating stronger economic incentives for domestic processing over the medium term. Defense contractors, EV manufacturers, and electronics companies should all be monitoring this closely.

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