2026-01-16 03:50:18

The US is moving forward with a bold push to strengthen domestic production of rare earths and critical minerals. Lawmakers are backing a $2.5 billion agency initiative aimed at reducing dependence on foreign supply chains for these essential resources.

Why this matters for crypto: Mining operations, semiconductor manufacturing for GPUs and ASICs, and blockchain infrastructure all rely heavily on stable supplies of rare earth elements and rare minerals. Any disruption in the global supply chain ripples through the entire industry—from equipment costs to energy infrastructure.

The move reflects growing concerns about supply chain vulnerabilities. With geopolitical tensions and competing demand from the AI and defense sectors, securing domestic production capacity has become a strategic priority. This could potentially stabilize raw material costs over the long term and strengthen the resilience of tech-heavy industries.

For the crypto and mining communities, this is worth monitoring. Policy decisions around critical mineral production directly influence hardware availability, manufacturing timelines, and ultimately the operational costs of mining operations worldwide.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

13 Likes

Reward
13
5
Repost
Share

Comment

0/400

RebaseVictim

· 2h ago

The recent moves in the US are really crucial for miners; if chip costs can be reduced, they should be reduced. By the way, is this 2.5B really enough? It feels like a drop in the bucket... If the supply chain stabilizes, can mining costs come down? That's the real focus, right? Geopolitical tensions are also affecting us here; when can we decouple? Wait, if this wave of self-production really happens, does that mean chips will be cheaper in the future? My mining rigs might be saved.

View OriginalReply0

JustHereForAirdrops

· 2h ago

Domestic miners are really about to take off this time, chip costs are saved... To be honest, what can 2.5B solve? It still feels like a drop in the bucket. The ability to lower the price of mining machines is a win; everything else is just虚的. Wait, if the US monopolizes rare earths like this, what do we do? Geopolitical tensions are about to get messy again. Is the chip shortage finally easing? Let me calm down... Wow, it's the same old strategy of defending China's supply chain, the calculations are really sharp. Now miners' days can indeed get better, with less pressure on costs. By the way, AI and mining are competing for resources, who will ultimately win?

View OriginalReply0

LiquidationKing

· 2h ago

Damn, the US really went all out this time, pouring in 250 million just to avoid being choked out. Now the miners can finally breathe a sigh of relief, otherwise the chip costs would really be unsustainable if they keep this up. The key is that China and the US are now fighting over this, whoever controls the rare earths is the big boss. Just thinking about it, if this policy really gets implemented, a 20-30% reduction in mining costs wouldn't be unreasonable, right? But honestly, if it takes five years for this to be implemented, can we really wait? Haha

View OriginalReply0

SelfCustodyBro

· 2h ago

The chip shortage is really a nightmare for the mining community. It would be good if this wave of actions in the US can alleviate it. Honestly, only when the supply chain stabilizes can costs come down. Currently, the cost of mining is too high. Tightness in rare earth mineral resources has been a longstanding issue over the past few years. Investing 250 million yuan—how much can that solve... Geopolitical games, in the end, hurt us miners the most. Hardware prices just go up whenever they want. The monopoly on chip manufacturing is too severe. US self-sufficiency is inevitable, which is good for us. Wait, could this be a prelude to some country's technological restrictions? I'm a bit worried. The biggest part of mining machine costs is electricity. Even if rare earths become cheaper... frankly, electricity costs are the real big expense. Are supply chain issues really this severe now? It was fine last year. Is this a sign of a rebound? 250 million yuan is just the beginning. Real results will take several years. Can we wait that long? Instead of focusing on rare earths, we should pay attention to electricity cost policies—that's the lifeline of mining.

View OriginalReply0

wrekt_but_learning

· 3h ago

2.5B invested, can it really alleviate the chip shortage, or is it just another PPT show? However, stabilizing mining machine costs is definitely something to watch. Miners are probably paying attention to the follow-up policies. The supply chain issue sounds nice in theory, but in reality, it's just geopolitical games. Anyway, let's wait and see how much costs can actually be reduced.

View OriginalReply0