Trump's Rare Earths Champions Were Supposed To Fight China. Instead, They're Fighting Each Other

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For years, the Trump administration’s rare-earth strategy has been straightforward: reduce dependence on China and create an American supply chain for the critical minerals powering everything from electric vehicles to fighter jets. Now two of the strategy’s biggest beneficiaries are fighting each other.

MP Materials Corp. , the only active rare-earth miner in the U.S., has filed a lawsuit against USA Rare Earth, Inc. , accusing the company of stealing proprietary magnet technology. The legal battle pits two companies backed by the Trump administration’s push to challenge China’s dominance of the rare-earth supply chain against one another.

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According to a complaint filed in Texas, MP Materials alleges that USA Rare Earth unlawfully obtained technology used to improve the performance of permanent magnets. The technology is a key component in products ranging from smartphones and consumer electronics to military equipment and electric vehicles.

The company claims a former employee disclosed proprietary information after joining USA Rare Earth last year.

“USA Rare Earth has repeatedly failed to meet its commercial and performance targets and is now resorting to stealing technology to dig itself out,” MP Materials alleged in the filing, Financial Times reported.