American coal companies are now venturing into rare earth mining! Ramaco (METC.US) has teamed up with Japanese companies to promote the localization of the rare earth industry chain in the United States.

The U.S. large coal producer Ramaco Resources Inc (METC.US) stated that the company is currently in discussions with some important Japanese rare earth industry chains and trading companies regarding potential supply agreements related to its plans to mine rare earths in Wyoming. This move highlights the increasing demand for rare earths domestically in the United States against the backdrop of the great power competition between China and the United States. The Trump administration is elevating rare earths from a "resource theme" to a "strategic industrial chain engineering", and this wave of interest in rare earths in the United States is even beginning to drive U.S. coal mines to venture into the rare earth industry. Since 2025, the competition between China and the United States in chips and rare earths has become increasingly fierce. The U.S. government under the leadership of President Trump is pushing for unprecedented support to expand the production of rare earth concentrates and rare earth magnets in the United States, aiming to achieve complete independence of the U.S. domestic rare earth supply system. It is understood that since 2025, the Trump administration has joined hands with major U.S. tech giants such as Apple Inc. to support large orders for the U.S. rare earth giant MP Materials (MP.US), which owns the Mountain Pass rare earth mine. This has led to an unprecedented bull market curve for MP Materials, whose stock price has soared by 300% since 2025 and reached new highs multiple times during this period. The rise in MP Materials' stock price reflects not just price or order stimulation, but rather the growing demand in sectors such as semiconductors, defense, permanent magnets, and advanced manufacturing for sources of rare earths not originating from China Rare Earth Resources And Technology, which is being amplified by both policy and capital. Randall Atkins, CEO of Ramaco Resources, stated last Friday in Tokyo that the company has been holding discussions with some enterprises to explore how they can participate in Ramaco's Brook Mine major mining project in the western United States. He stated that the discussions cover topics such as off-take agreements, purchasing, direct investment, and technological cooperation. Atkins stated that Japanese conglomerate Sumitomo Corp. and energy and materials company Iwatani Corp. are representatives of Japanese companies that Ramaco has been in contact with. Sumitomo Corp. declined to comment, while Iwatani Corp. did not respond to requests for comment. Rare earths are considered critical minerals globally and are widely used in high-tech manufacturing sectors, including electric vehicles, smartphones, and powerful magnets used in large defense missile systems. Japan, the United States, the UK, and other Western countries are all striving to reduce their dependence on China Rare Earth Resources And Technology. China's long-standing dominant position in most processing stages of the global rare earth industry chain gave the Chinese government a crucial bargaining chip in the high-profile trade war with the U.S. last year. Shortly thereafter, China banned the export of dual-use products with potential military applications to Japan, with rare earths being a key category. Atkins stated that Ramaco is actively developing the Brook Mine, an old coal mine with neodymium, dysprosium, and other rare earth resources, as well as other critical minerals of interest to Western countries like gallium. He mentioned that the company is currently conducting preliminary feasibility studies on the mine, with the initial goal being completion by the end of 2026. By actively and deeply cooperating with Japanese companies, Ramaco's initiatives align with the potential $100 billion trade agreement reached between Tokyo and the Trump administration, which requires Japanese private or large state-owned enterprises to invest $55 billion in U.S. projects. Why is the U.S. eager to achieve "de-Chinaization" of the rare earth industry chain? Rare earth resources, especially elements like neodymium, praseodymium, dysprosium, and terbium, are essential materials in high-performance permanent magnets. These magnets are critical components in missiles, fighter jets, submarines, satellites, unmanned systems, electric vehicles, motors, and high-end industrial equipment. In recent years, the U.S. government has been quite direct in its public statements, expressing concerns about the country's "excessive dependence" on imported rare earth permanent magnets and how domestic production can only meet a small portion of defense needs. Even if the U.S. can mine the ores domestically, as long as processing, refining, and magnet manufacturing are still dependent on foreign countries, this reliance still poses security risks. In other words, the U.S. needs to address not just the dependence on mines but also the vulnerability along the entire chain from mining to processing, from metals to magnets, to end applications. In the context of the great power competition between China and the U.S., holding the entire rare earth industry chain has proven to be a very effective economic weapon. China overwhelmingly dominates rare earths and related processing stages, with statistics from the International Energy Agency showing that China holds up to 90% of the leading share in refining critical minerals, including core rare earth mines. CFR studies also point out that China controls the vast majority of heavy rare earth processing and permanent magnet manufacturing capabilities. Over the past year, China has imposed export bans on dual-use products to Japan and included rare earths in sensitive geopolitical game-playing, resulting in reports of increased industrial and manufacturing pressure on Japanese companies. For the U.S., this serves as a reminder that as long as it does not have dominance in refining and magnet materials, its semiconductor, defense, automotive, power equipment, and advanced manufacturing systems could be choked in the conflict. From a financial market perspective, rare earths are no longer just cyclical commodities but strategic assets priced for their premium in geopolitical, defense, and supply chain security terms. If global political conflicts escalate significantly, the U.S. government might not just be lacking a batch of rare earth ores, but rather, the independence and certainty of the entire industrial system.