While Venezuela’s oil grabs headlines — Trump admin is focused on another valuable asset
US President Donald Trump has left no doubts about his desire to make profits from Venezuelan oil, but it seems like he is interested in another one of the country’s natural resources as well. A CNN report suggests that the Trump administration has taken a keen interest in the rare earth minerals, which Venezuela reportedly has in unverified amounts. These rare earth minerals are crucial for the US, as it is crucial for its national security.
Such raw materials are important for several industries, like defence and technology. Ever since Trump took office for the second term, he has repeatedly stressed their importance. However, mining rare earth minerals in Venezuela might not be as simple as claiming control over their oil. First of all, the quantity and quality of these minerals are uncertain, and they might not even end up helping the US in a significant way. Secondly, there is a matter of safety.
Large parts of Venezuela that potentially might have these minerals are controlled by guerrilla soldiers and armed groups that engage in illegal gold mining. So, if the US wanted to take control of these areas, it would have to be ready to face losses. There is also an environmental angle, as mining for rare earth minerals could also lead to adverse effects on the climate. Experts believe that it will be a challenging task.
“There is an awareness within the administration that even beyond oil, there’s wider natural resource value in the country,” said Reed Blakemore, director of research at the Atlantic Council Global Energy Center. “However, if we’re talking about the conditions under which we are able to exploit those mineral resources and bring them to market, it’s a much more challenging story. And even, frankly, more challenging than the oil story.”
Sung Choi, metals and mining analyst at BloombergNEF, mentioned, “While the country sits on large deposits of mineral resources, it is crippled by a combination of poor geological data, low-skilled labor, organized crime, lack of investments, and a volatile policy environment.”
It wouldn't be a complete shocker if the US decides to go after these rare earth minerals after everything that went down in 2025. Minerals have also been one of the major reasons for the present strain in US-China relations. The Asian nation controls over 90% of global rare earth refining, giving it a virtual monopoly over any nation. If Venezuela is sitting on those very same minerals that the Trump administration covets, it will become another core interest that may even precede oil.
“China still holds near-singular capacity to process rare earth metals, and that industrial and geopolitical edge cannot be overcome overnight,” said Joel Dodge, director of industrial policy and economic security at the Vanderbilt Policy Accelerator. If mining and refining minerals are made possible in Venezuela, then what does it spell for the rest of the world?
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