In a New Hampshire office park, a U.S. start-up is processing rare earth elements, aiming to challenge China's dominance in this critical industry. The company, which remains unnamed in order to protect its proprietary processes, operates two furnaces that transform raw materials into ingots destined for use in electric vehicle motors and potentially even military applications like fighter jets. This nascent effort reflects a broader push within the United States to revive its rare earth processing capabilities and reduce reliance on China, which currently refines over 90% of the world's supply.

Rare earths, a group of 17 elements with names like neodymium and dysprosium, are essential components in a wide range of technologies, from powerful magnets and lasers to MRI machines. While not geologically scarce, their extraction and processing are complex and environmentally challenging. China's rise to dominance in the rare earth sector began in the mid-1990s, fueled by robust industrial policies and less stringent environmental regulations, allowing Chinese companies to undercut competitors and establish a near-monopoly.

The United States, once a major player in rare earth production, saw its industry decline as China's production surged. This shift has raised concerns among Western governments and businesses about supply chain vulnerabilities and potential geopolitical leverage. The U.S. government has since implemented policies to encourage domestic rare earth production, including funding research and development and streamlining permitting processes.

"The current situation presents both a challenge and an opportunity," said Dr. Emily Carter, a materials science professor at Princeton University, who is not directly involved with the New Hampshire start-up. "Rebuilding a domestic rare earth industry requires significant investment and technological innovation, but it's crucial for ensuring a secure and diversified supply chain."

The New Hampshire start-up represents one small step in this larger effort. While the company's output is currently limited, it demonstrates the potential for innovation and growth in the U.S. rare earth sector. The company is focused on developing more efficient and environmentally friendly processing methods, aiming to overcome the challenges that have hindered previous attempts to compete with China. The ingots produced in New Hampshire are currently undergoing testing and evaluation by potential customers, with plans to scale up production in the coming years, pending successful trials and further investment.