The Trump administration is escalating efforts to cut U.S. dependence on Chinese rare-earth supplies by channeling hundreds of millions of dollars into domestic producers and threatening steep trade penalties. The Pentagon has committed $400 million to MP Materials and extended the company a $150 million loan tied to a 10-year price floor for neodymium and praseodymium oxides used in electric vehicles, smartphones and advanced weapons systems. Additional money is flowing to early-stage developers such as USA Rare Earth and NioCorp, and legislation enacted this year sets aside $2 billion to expand the government’s strategic stockpile and up to $5 billion through 2029 to fortify supply chains. President Donald Trump, who has floated tariffs of up to 200 percent on Chinese imports if Beijing withholds magnet exports, says the United States holds “much bigger and better cards” in the contest for critical minerals. Analysts estimate U.S. industry consumes roughly 35,000 tons of rare-earth magnets annually—demand that could double within a decade—far outstripping domestic output even after the new investments come on line. Australia’s Lynas Rare Earths, the largest producer outside China, underscored the strategic scramble by unveiling a A$750 million (US$488 million) share sale after posting a 90 percent profit slump to A$8 million. The company warned that its heavy-rare-earth separation plant planned for Seadrift, Texas may not proceed as conceived and is negotiating offtake terms with the U.S. Department of Defense. Lynas now intends to prioritise capacity expansions in Malaysia while exploring partnerships with U.S. magnet makers, highlighting the wider challenge Washington faces in building an end-to-end supply chain independent of China.