China Is Closing the Door on Heavy Rare Earth Exports for Good, NioCorp CEO Warns in Fox News Op-Ed

NioCorp Developments CEO Mark Smith has published an opinion editorial in Fox News warning that China's current restrictions on heavy rare earth exports represent a permanent strategic shift rather than temporary bargaining leverage. Smith argues that Western leaders are misinterpreting Beijing's intentions, as China methodically executes a long-term plan to cease shipping critical materials abroad entirely in favor of keeping the complete mine-to-manufacturer supply chain within its borders.

The strategic implications are significant given that heavy rare earths like dysprosium and terbium are essential for high-performance permanent magnets used in military applications including cruise missile guidance systems, fighter jet radars, and submarine propulsion. China has maintained near-monopoly control over these materials for over a decade but effectively closed access to Western defense companies in April 2025. Smith illustrates the economic incentive driving China's decision: while exporting a kilogram of dysprosium as powder generates only hundreds of dollars, incorporating that same material into an electric vehicle motor enables China to export a $40,000 finished product.

Smith credits the Trump Administration with recognizing the gravity of the situation and moving decisively to develop domestic alternatives, including Pentagon investments in scandium supply chains. However, he emphasizes that U.S. companies and defense contractors face severe shortages until domestic production capacity comes online, including from projects like NioCorp's Elk Creek facility in Nebraska.

The warning carries particular weight given NioCorp's position as a developer of critical mineral projects in the United States. The company's Elk Creek Project is designed to produce niobium, scandium, and titanium, with potential rare earth production capabilities. This positions NioCorp as a potential beneficiary of the strategic shift toward domestic critical mineral production that Smith advocates, while also lending credibility to his assessment of supply chain vulnerabilities in the defense and technology sectors.