Commodities February 11, 2026

Taiwan to Evaluate U.S. Rare Earth Deposits as It Seeks On-Island Refining Capacity

Economy ministry to send geological and mining officials to assess elements and suitability of U.S. deposits amid efforts to reduce China-centric supply risk

By Derek Hwang
Taiwan to Evaluate U.S. Rare Earth Deposits as It Seeks On-Island Refining Capacity

Taiwan's Economy Ministry will dispatch its Geological Survey and Mining Management Agency to the United States to inspect rare earth deposits, evaluating which elements they contain and whether they meet Taipei's needs. The move aims to enable Taiwan to refine imported material on-island and expand domestic refining capacity to meet up to half of projected demand.

Key Points

  • Taiwan will dispatch Geological Survey and Mining Management Agency teams to the United States to assess rare earth deposits, focusing on the specific elements present and their suitability.
  • Taiwan consumes about 1,500 metric tonnes of rare earths annually, expected to rise to about 2,000 metric tonnes with economic growth; the island aims to expand refining capacity to meet half of that projected demand.
  • The move aligns with wider U.S. efforts to secure critical minerals, including Project Vault - a U.S. strategic stockpile backed by $10 billion from the U.S. Export-Import Bank and $2 billion in private funding - though Taiwan is not formally part of that scheme.

Taipei will send government technical teams to the United States to conduct on-site assessments of rare earth mineral deposits, Taiwan's Economy Minister Kung Ming-hsin told reporters. The mission will be carried out by the ministry's Geological Survey and Mining Management Agency and will focus on identifying which specific rare-earth elements are present and whether those deposits contain the elements Taiwan requires.

Kung stressed that the assessment is aimed at determining suitability - in other words, confirming whether U.S. deposits contain the particular rare-earth elements Taipei needs. He said the investigation remains necessary because Taiwan does not itself mine these elements and must therefore evaluate sources abroad before deciding on next steps.

The minister noted that Taiwan can contribute to the supply chain through refining rather than extraction. "The technology is not an issue; the next step is scaling up," he said, indicating the emphasis will be on enlarging refining capacity to handle material from other countries.

Taiwan currently consumes roughly 1,500 metric tonnes of rare earths each year. Kung said that figure is expected to climb to about 2,000 metric tonnes as the economy grows. He set a goal to expand production capacity so that Taiwan could supply half of its own projected demand, a move intended to strengthen the island's supply chain.

The decision to examine U.S. deposits comes as the U.S. administration has intensified efforts to secure its own supplies of critical minerals. President Donald Trump’s administration moved to bolster domestic supplies after China disrupted markets and concerned senior U.S. officials by withholding rare earths needed by American automakers and other industrial manufacturers. In addition, the administration last week announced a strategic stockpile program, Project Vault, which it said is backed by $10 billion in seed funding from the U.S. Export-Import Bank and $2 billion in private funding.

Although Taiwan - a major player in semiconductor manufacturing - is not formally part of that Project Vault scheme, officials in Taipei have previously discussed with U.S. counterparts how Taiwan might assist, given concerns about reliance on a China-centric supply chain. Kung also acknowledged the broader geopolitical context in which Taiwan seeks alternative supply arrangements, noting tensions with China, which views Taiwan as its territory and has increased military pressure.


Summary of the initiative

  • Taiwan will send the Geological Survey and Mining Management Agency to the United States to inspect rare earth deposits.
  • Assessments will determine which rare-earth elements are present and whether they match Taiwan's needs.
  • Taiwan aims to scale up refining capacity to meet half of its projected demand as consumption rises.

Risks

  • Uncertainty over whether U.S. deposits contain the specific rare-earth elements Taiwan requires, which could delay or complicate plans to onshore refining - impacts mining and materials sectors.
  • Geopolitical tensions with China, which views Taiwan as its territory and has increased military pressure, create supply-chain and security uncertainties for Taiwan's industrial and semiconductor sectors.
  • Scaling up refining capacity presents execution risk; although technology is considered available, rapidly enlarging production to meet half of projected demand may affect capital-intensive chemicals and processing industries.

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