U.S. Executives Testify on China Rare-Earth Pricing Tactics

Executives from U.S. critical-minerals firms told a Congressional hearing that China has depressed prices for rare-earths and related materials, eroding incentives for domestic investment and capacity building.

"Predatory pricing destroyed incentives to invest and it kept capital scarce," said Matthew Sloustcher, executive vice president of corporate affairs at MP Materials, during testimony.

Witnesses described how Chinese actors can influence pricing platforms and distort benchmark mechanisms, complicating price discovery for rare-earth elements used in electric-vehicle motors, sensors and other auto components. Distorted benchmarks, they said, mask the true cost of production and discourage new entrants to mining and processing.

The automotive sector’s heavy reliance on Chinese supply chains for these critical minerals increases exposure to market manipulation and could slow electrification timelines if supply or investment tightens.

Executives urged stronger transparency in benchmark reporting, targeted policy measures to rebuild domestic processing capacity, and incentives to attract capital back into mining and refining. Lawmakers signaled interest in further scrutiny and potential steps to shore up supply-chain resilience.