ANALYSIS
Graphite Creek: the Alaska discovery fueling America’s challenge to China’s dominance over critical minerals
The discovery of rare earths essential to technology and defense within the nation’s largest graphite deposit could bolster Washington’s efforts to reduce its dependence on Beijing.
A plane flies over Nome, a town near Graphite Creek
In international waters, in Ukraine, in Uzbekistan... In its frantic search for rare earths to counter Chinese hegemony, Washington has set its sights on the length and breadth of the globe. And, as of past month, inward as well: several of the coveted minerals have been found in the Graphite Creek deposit in Alaska.
"Big news Alaska!", celebrated Governor Mike Dunleavy shortly after the announcement. "China may dominate these markets today, but with President Trump's support for responsible resource development, we're bringing critical minerals production home and making American mining great again!," he said.
The mineral deposit is located in the Kigluaik Mountains on the Seward Peninsula. The nearest town, Nome, lies 60 kilometers to the south.
It was identified by U.S. Geological Survey (USGS) researchers as the largest flake graphite deposit (named for its fish-scale-like shape) in the country and "among the largest in the world". To those merits it now adds unknown quantities of rare earths.
"The presence of two Defense Production Act Title III materials – graphite and REEs – in a single deposit further underscores Graphite Creek’s position as a truly generational deposit," said Anthony Huston, president of Graphite One, the company in charge of the deposit.
The mining company announced the find on November 13, claiming that "geochemical analyses" carried out by a laboratory had detected rare earths. Specifically, they claim to have found materials essential in the creation of magnets.
"Initial test work identifies all five of the principal permanent magnet REEs at Graphite Creek," they announced. Namely, neodymium, praseodymium, dysprosium, terbium and samarium.
These are "fundamental" in the manufacture of products such as electric vehicles, motors and robots, according to Madeline Ruid of Global X. Graphite One also noted that they are used for advanced defense systems, such as radar and guided munitions.
Because of their "distinct" properties, they are, the company said, "indispensable across military applications and commercial electronics, renewable energy, and telecommunications – underscoring their strategic importance to U.S industry and national security."
Looking to Alaska, thinking of China
China controls the rare earths market. It produces about 60% of these minerals, has 90% of the world's processing capacity. This is detailed in a report from the think tank Council on Foreign Relations (CFR), which also highlights U.S. dependence:
"In 2024, the United States was entirely reliant on imports for twelve of fifty identified critical minerals, and imported over 50 percent of total demand for another twenty-eight of those minerals, mainly from China."
The threat of Chinese hegemony is more than theoretical: "China’s willingness to leverage its market dominance for economic statecraft exposes countries to coercion," CFR asserts, recalling that a year ago Beijing banned the export of two metals - gallium and germanium - which if not later lifted could have cost more than $3.4 billion to U.S. GDP.
Since Donald Trump took office, the Asian giant has twice suspended rare earth exports to the United States. The tap, for now, remains open. However, "the last few months have shown China’s willingness to leverage its dominance over critical mineral supply chains."
Trump undertook a series of measures to try to tip the balance. In addition to deals beyond U.S. borders, he encouraged exploration at home. He ordered resources redirected, potential new deposits mapped and permits expedited.
"The nation that controls vital minerals has the ability to dictate world events," asserted author and analyst Lawrence Kadish, in an article in VOZ.
The possible Chinese "stranglehold" is, he wrote, "likely the topic of multiple Pentagon conferences behind closed doors." And he asserted:
"The United States needs to recognize the threat and channel its considerable resources and technology talent to ensure we are never held hostage by a hostile nation holding rare earth minerals as a weapon poised at our throats."
What are rare minerals?
Despite their name, they are not rare. In a 2024 balance sheet, the U.S. Geological Survey estimated that there were more than 110 million tons in the world.
But they are highly concentrated: more than a third of these reserves are in China, with 44 million tons. They are followed by Vietnam (22), Brazil (21), Russia (10) and India (7).
Each of these minerals has its own utility for industry: europium for television screens, cerium for glass polishing or lanthanum for combustion engine catalysts. Their great value is that their properties are often unique, or replaceable only at high cost.
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