Part 6/12:
In the wake of environmental challenges and high operational costs, the United States' rare earth industry declined. During the same period, China made a strategic decision to dominate the industry. Backed by significant government support, China invested billions in exploring and refining rare earths, establishing a near-monopoly.
By the mid-1980s, China was outpacing the U.S. not just in production but also in technological know-how. They acquired key American companies, such as Magnaquench in Indiana, and swiftly transferred critical patents and manufacturing capabilities to Chinese firms. The Chinese government, recognizing the strategic importance—comparable to oil in the Middle East—encouraged this industry’s growth with top-level directives.