Foreign entities seem to be under potential pressure as China constructs means to exert influence on them

In a significant development, China is reportedly threatening buyers with more supply restrictions on rare earth metals, a move that could have far-reaching implications for global technology industries.

The standoff comes as the American company Critical Metals plans to invest in U.S. rare earth mining, partnering with tech giant Apple. Critical Metals has signed a supply contract to deliver heavy rare earth concentrates from its Tanbreez project in Greenland to the U.S. government-funded processing facility of Ucore Rare Metals in Louisiana.

China's tight grip on the global rare earth market is well-established, with the country controlling 92% of the world's processing of these valuable materials. This dominance extends to the manufacturing of battery and magnet components, crucial for various technologies including electric vehicles, smartphones, and defense systems.

Foreign companies purchasing rare earths from China are warned against stockpiling them, according to the Financial Times. This warning follows China's recent crackdown on hoarding, as it builds up a new leverage point against foreign nations.

The U.S., however, has its own resources. The Mountain Pass Mine, located in California's Mojave Desert, helped the country remain largely self-sufficient from the mid-1960s to the 1980s.

The importance of rare earth metals in the 21st century has been highlighted by experts testifying before the House Foreign Affairs Committee, who warned that China's control over critical minerals is a "life or death matter."

Senator Joe Manchin believes the U.S. has the necessary resources to quickly enter the rare earth materials market. He suggests the U.S. should produce and rely on allies like Japan and South Korea for refining these materials.

China's control over the refining of many rare earth metals is also a concern, with some refining taking place beyond international restrictions. The country is implementing mining and processing quotas, even limiting its own entities.

Despite these developments, China's President Xi Jinping has not been directly involved in the rare earths issue in the provided paragraphs.

Apple has also shown its commitment to the U.S. rare earth market, investing $500M in a US mine for these minerals. USA Rare Earth CEO Joshua Ballard discussed the company going public on 'The Claman Countdown.'

This report was contributed to by Caitlin McFall from Fox News Digital. While the term "rare earth metals" may imply scarcity, many of the elements are common and mined throughout the world. The race for control over these valuable resources is set to continue.