Published by Global Banking & Finance Review®
Posted on February 11, 2026
2 min readLast updated: February 11, 2026
Add as preferred source on GoogleTaiwan will assess US rare earth deposits to refine minerals locally, aiming to reduce reliance on China and strengthen its supply chain.
TAIPEI, Feb 11 (Reuters) - Taiwan plans to send officials to assess U.S. rare earths deposits with a goal to have such minerals refined on the island, Economy Minister Kung Ming-hsin said on Wednesday.
President Donald Trump's administration has stepped up efforts to secure U.S. supplies of critical minerals after China rattled senior officials and global markets last year by withholding rare earths required by American automakers and other industrial manufacturers.
Trump last week launched a U.S. strategic stockpile of critical minerals, called Project Vault, backed by $10 billion in seed funding from the U.S. Export-Import Bank and $2 billion in private funding.
While semiconductor powerhouse Taiwan is not formally part of that scheme, it has previously held talks with the United States on how it can help, given Taipei's concerns about over-reliance on a China-centric supply chain.
China views Taiwan as its own territory and has stepped up its military threats.
Speaking to reporters in Taipei, Kung said the ministry's Geological Survey and Mining Management Agency would go to the United States to assess rare earths deposits there.
"Specifically, what rare-earth elements they contain and whether they are suitable. In other words, whether those are the rare earths we actually need. So we still need to investigate," he said.
Given Taiwan does not mine such elements itself, it can instead play a role in refining the materials from other countries, Kung added.
"The technology is not an issue; the next step is scaling up," he said.
Taiwan consumes 1,500 metric tonnes of rare earth annually, a figure projected to rise to 2,000 metric tonnes given economic growth, Kung added.
"Our goal is to expand production capacity to meet half of our demand by then, strengthening the supply chain."
(Reporting by Jeanny Kao; Writing by Ben Blanchard; Editing by Kim Coghill)
Rare earth elements are a group of 17 chemical elements in the periodic table that are critical for various technologies, including electronics, renewable energy, and defense applications.
Refining is the process of purifying a substance, such as minerals, to extract valuable components and remove impurities, making them suitable for use in manufacturing.
Project Vault is a U.S. initiative aimed at securing supplies of critical minerals, backed by significant funding to enhance domestic production and reduce reliance on foreign sources.
Semiconductor technology is crucial for modern electronics, enabling the production of microchips that power devices such as computers, smartphones, and various industrial applications.
Explore more articles in the Finance category
