America’s only rare earth mines have been heard from many unsettling companies.

Omaha, Nevada (AP) – America’s only rare earth mine quickly heard from an uneasy companyChina answeredTo President DonaldTrump’s tariffsThis month, by restricting exports of minerals used in military applications and many high-tech equipment.

“The effect was immediate, based on the number of calls we received.”MP Materialsa company that runs the Mountain Pass Mine in the Mojave Desert, California.

If China maintains export controls for a long time, or if they expand them to seek advantage, then a trade war between the two biggest economies of the world could lead to a significant shortage of rare earth elements.Trade negotiations. As California mines are unable to meet all US demand for rare earths, Trump is trying to clear his path to a new mine.

Rare earth elements are important components of electric vehicles, powerful magnets, advanced fighter jets, submarines, smartphones, television screens and many other products. Despite their name, the 17 elements are not in fact rare, but it is difficult to find them with enough concentration to create a mine worth investing in.

Tariffs affect the supply and costs of minerals

MP Material, which acquired Idol Mountain Pass Site in 2017, said Thursday it would stop sending ore to China for processing due to export restrictions and 125% tariffs on US imports China. The company said it will continue to process almost half of the mines on the site and function to increase its processing capacity while preserving the rest.

“Selling valuable and important minerals at a 125% tariff is commercially reasonable, but not consistent with the national interests of the United States,” the MP document states.statement.

Experts say manufacturers relying on rare earth elements and other important minerals will see prices rising, but for now there could be enough global supply available to keep the factories operating.

The California mines generate Neodymium and Praseodymium. This is a light rare earth, a major component of permanent rare earth magnets in EVs and wind turbines. However, small amounts of heavy rare earths that China has limited, such as terbium and dysprosium, are key to helping magnets withstand high temperatures.

Already, since the end of March, terbium prices have increased 24% to $933 per kilogram.

“Our estimates suggest that there is enough stockpile in the market to maintain demand for now,” said Neham Keljee, a benchmark mineral intelligence rare earth analyst, adding that a shortage could emerge later this year.

China holds power in the market

China has incredible power over the rare earth market. The country has the largest mines, producing 270,000 tons (297,624 tons) of minerals compared to 45,000 tons (40,823 metric tons) mined in the US China last year.

limitBeijing was set up on April 4th and requires a Chinese exporter of seven heavy rare earths and magnets to obtain a special license. Retaliation control strengthened what the Trump administration and manufacturers view as a disastrous need to build additional US mines and reduce the state’s dependence on China.

Trump has been successful so far and has tried to make him a strong armGreenlandandUkraineTo provide the US with more of their rare earths and other important materials. Last month he signed an executive order calling for the federal government to streamline approval for permits for new mines and encourage investment in the project.

Two companies are trying to develop a mineNebraskaand Montana. Officials of Niocorp and U.S. Key Documents said they hope that push from the White House will help them raise funds and get the approval they need to start drilling. Niocorp has worked for many years to raise $1.1 billion to build a mine in southeastern Nebraska.

“When I sit down and think about how China can deal with this enormous leverage that it has through these minerals, I have to deal with this leverage situation because no one even knows anything about it.” “And I think the best way is to create our own heavy rare earth here in America, and we can do that.”

MP Documents are working to quickly expand its processing capacity with the help of around $45 million that came out of the first Trump administration. However, after investing nearly $1 billion since 2020, the company currently lacks the ability to handle heavy rare earths that China has limited. The MP material said it was working quickly to change it.

A large US automaker declined to commentHow to depend onThey are affected by rare earth and Chinese export curbs. Like a major defense contractor Boeing and Lockheed Martinspecifically targeting China’s restrictions, while also modestly restraining over 12 other defense and aerospace companies.

Military technology is a small but important user of rare earths. Trump issued an executive order on Tuesday, calling for an investigation into the national security impact of being highly dependent on China on its elements.

A spokesman for Lockheed, which manufactures the F-22 fighter jet, said the company is continuing to evaluate “the global rare earth supply chain to ensure access to critical materials that support its customers’ missions.”

Manufacturers are preparing for price increases

Some battery manufacturers can let go of key elements within a few weeks, according to Steve Christensen, executive director of the Responsible Battery Union, an association representing batteries and car manufacturers and battery sellers.

Already, manufacturers have seen the prices of antimony, an element used to extend the lifespan of traditional lead-acid batteries since China restricted exports last year. This element is not one of the 17 rare earths, but one of the important minerals that Trump wants to see what was produced domestically.

Initially, carmakers could try to absorb the increased battery costs without increasing vehicle prices, but it may not be sustainable if China’s restrictions remain. The 25% tariff on which Trump fits all imported cars and auto parts was already expected to increase costs, but the president suggested this week that he might put it on the industryTemporary grace.

The US met rare earth needs with domestic sources until the late 1990s. Production was primarily terminated after low-cost Chinese ore flooded the global market. Robots, drones and other new technologies are rapidly increasing the demand for raw materials.

Niocorp recently has been making more exploratory drills at its site this summer.Export Transport BankRare earth minerals near Elk Creek, Nebraska are located underground to justify a $800 million loan to help fund the project.

However, the new rare earth mines have been away from operations at Niocorp in the US for years. If everything is going well with fundraising, it is possible that a niobium, scandium, titanium and rare earth assortment of niobium, scandium, titanium and rare earths will be running by the end of President Trump.

The key US materials are planning to excavate several tons of ore in Montana this summer, allowing us to test the processing methods under development. The Sheep Creek Project is less than the Nebraska Project, but Harvey Kay, the US Director of Critical Materials, said the site has high concentrations of rare earth promising ore deposits.

This story was originally introduced Fortune.com