In 2025, China imposed export controls on seven heavy rare earth elements, leading to a sharp drop in exports to the US and other key markets. This has led experts to warn that China is prepared to exploit U.S. dependence on critical minerals as statecraft. The bipartisan Critical Minerals Investment Tax Modernization Act aims to address this vulnerability within the existing tax code. It would raise the percentage depletion allowance for domestically mined rare elements and scandium from 14% to 22%, bringing them closer to parity with other strategic minerals. The bill is designed to accelerate domestic production and reduce reliance on foreign supply chains. However, it remains unclear if the underlying economics remain misaligned.