Venezuela has once again been brought back on the strategic agenda of Washington, but this time the interests reach out into a realm that extends well beyond Venezuela’s oil reserves. With international competition for strategic metals heating up, America is now taking a fresh look at its policy towards Venezuela, as it relates to rare earth metals. Rare earth elements lie right at the very center of all economies, as everything that powers them, right down to missiles, relies on them.
US-China Rare Earth Race
Rare earth elements refer to resources that are essential in advanced manufacturing, clean energy, artificial intelligence and defense applications. These resources, although rare in name are not rare in quantity, as their processing industry is very skewed. About 60% of the world’s mining production and over 90% of refining and processing capacity are owned by China.
Such a position of power allows China to exert its leverage, which has previously been exercised in restricting the export of these resources during a disagreement on trade. It has become a concern and a challenge for Washington to source these materials from a strategic rival.
How Trump’s Venezuela Policy Is About More Than Oil
US President Donald Trump’s Venezuela policy initiative also slots neatly into this competition. Although Venezuelan energy sanctions and politics continue as crucial considerations, the ultimate game here remains reducing the level of the Chinese strategic edge in critical minerals.
Shortly after assuming the presidency, Trump issued executive orders targeting increased domestic rare earth material extraction and reducing the alleged chokehold grip of China on this industry. Venezuela, despite its economic troubles, represents an important regional option regarding available mineral resources complementary to American supplies if existing politics and laws could be overcome.
Why Venezuela Matters in US Strategic Planning
Venezuela’s interest lies in its geology and location. It is in the Western Hemisphere and so provides a location advantage which might mitigate transportation risks and challenges. Venezuela’s Guayana Shield in the south has rare earth resource potential along with other commodities such as gold, iron ores and bauxite.
Nevertheless, these are yet to be quantified. Industrial estimates in late 2025 indicated potential in Venezuela to be no more than a small amount compared to large producing nations such as China and Australia, which has direct association with thorium and monazite sands. Nevertheless, there would be a slight reduction in reliance on nations like China.
Scale of China’s Influence in Venezuela
But any U.S. goals are challenged by the harsh realities of Chinese involvement in Venezuela. China is deeply entrenched in Venezuela. China has been providing economic life support to the Venezuelan government for years, as it has supported the Venezuelan oil company, PDVSA and expanded its ventures into mining and infrastructure development.
The illegal and unofficial mining organizations, which are reportedly active in areas such as the Orinoco Mining Belt are thought to be funneling resources through difficult to trace channels to be benefited mainly by the Chinese. The relationship between the two countries is just as solid regarding oil. Of the 900,000 barrels of oil that Venezuela exports every day, it is estimated that 800,000 barrels go to China, which is often paid for in yuan.
