Mineral processing is going to be big business in the US due to an ongoing spat with China, Reuters has reported.

The US army is looking to fund the contribution of a processing facility that will process rare earths in a bid to find a domestic source of a number of important minerals that it currently imports from China.

Over 80 per cent of minerals were imported from China between 2014 and 17, according to estimates which could be problematic as experts have expressed concerns Beijing could use its strong position as a rare earth supplier to its advantage in the trade war. It is thought that China controls over 90 per cent of the world’s trade in ‘rare earth’ minerals such as gold and other metals.

Rare earth minerals are needed for the production of many items such as cell phones, computers, batteries and motors used in electric vehicles. The army also needs them for the construction of important military equipment.

UCore Rare Metals CEO Jim McKenzie told Reuters: “The US rare earths industry needs big help to compete against the Chinese. It’s not just about the money, but also the optics of broad support from Washington.”

Last month the US military sought proposals from miners last month about the cost of them constructing a rare earth facility. If the US army does go ahead with the creation of this facility then it will be the first time in 70 years the US has invested in this.