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The Trump administration brokered an unusual deal with a U.S. mining, refining and magnet company as part of a plan to diminish America's reliance on China for rare earths.

About a decade after he bought a shuttered rare earths mine that was, literally, partially underwater, MP Materials CEO James Litinsky has transformed his business into a pivotal player in America's national security.

Since taking over the rare earth industry from the United States in the 1990s, China has dominated the entire supply chain. That includes the mining, processing and especially the making of super-powered magnets using these elemental metals, which are essential components inside smartphones, robotics, fighter jets and drones. When President Trump enacted his tariff plans in April 2025, China responded by restricting sales of some rare earth elements and magnets to the U.S. – and requiring companies to file detailed disclosures for how they would be used.

"As it stands today, we need permission from the Chinese government to make things. We need permission from the Chinese government to make military things," Litinsky said. "The practical reality is, that is not an acceptable condition."

What are rare earths and where are they in the U.S.

Despite the name, rare earths aren't rare; what's actually rare are sites with high enough concentrations of rare earths, and accessible enough locations, to make extraction worthwhile. In all, there are 17 rare earth elements, each one an elemental metal on the periodic table.

These are not well-known metals like iron, copper and aluminum. There's europium, which enhanced the color red in early television sets, and neodymium, which strengthens and miniaturizes magnets. These so-called "rare earth permanent magnets" are used in everything from high-speed rail and electric vehicles to the tiny motors that make iPhones buzz, according to Julie Klinger, a professor of environmental studies at the University of Wisconsin-Madison and a rare earths expert.