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 issued a stark warning through a Fox News opinion editorial that China's export restrictions on heavy rare earths represent a permanent strategic realignment rather than temporary negotiating leverage. Smith argues that Western leaders fundamentally misunderstand Beijing's long-term economic and military strategy to retain control over the entire mine-to-magnet-to-manufacturer supply chain within Chinese borders.

The implications are severe for Western defense and industrial applications. Heavy rare earths such as dysprosium and terbium are essential components in high-performance permanent magnets that power modern military systems including cruise missile guidance, 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 emphasizes that a kilogram of dysprosium earns China hundreds of dollars as raw material, but generates far greater value when incorporated into finished products like electric vehicles worth $40,000.

The Trump Administration has recognized the strategic threat and is aggressively pursuing domestic alternatives, including Pentagon investments in scandium supply chains. However, U.S. companies and military applications face dangerous shortages until American production facilities like NioCorp's Elk Creek Project in Nebraska come online. The project is designed to produce niobium, scandium, and titanium, with potential rare earth production including the critical magnetic rare earths needed for defense applications.

This development represents a fundamental shift in global critical minerals supply chains, with China leveraging its resource dominance to support its Made in China 2025 manufacturing strategy. The rare earth supply crisis highlights the vulnerability of Western industrial and defense capabilities to strategic resource dependencies, making domestic production projects increasingly vital to national security and economic competitiveness.