The New Land Rush: Can Oklahoma’s Big Bet on Rare Earths Revive Its Former Glory?

There is a version of Oklahoma that lives vividly in the memory of those who grew up there: a state defined by the steady rhythm of the pumpjack, a land of black gold where fortunes were made and the economy hummed with the power of oil. Oklahoma, a financial powerhouse that helped fuel America, has largely faded, a victim of shifting global energy markets and the rise of OPEC. The state that remains is often poorer, proudly conservative, and, as I can personally attest, a tough-to-convince place that can stubbornly stick to what it knows, profitable or not.

But beneath the plains, a new kind of treasure lies waiting, one that could potentially return the state to its former glory. This treasure isn’t oil; it is the suite of obscure but essential elements known as rare earths and critical minerals—the indispensable building blocks of everything from iPhones and electric vehicles to the Pentagon’s most advanced weapons systems. A quiet but audacious industrial revolution is taking root in Oklahoma, a high-stakes bet to transform the state into the central processing hub for America’s entire critical minerals supply chain. If it succeeds, it could be a life-altering boon. But as always, there are challenges, ones that strike at the heart of Oklahoma’s culture and its finances.

The strategic imperative for this new land rush is undeniable. For decades, the United States has allowed itself to become dangerously dependent on China, which has built a near-total monopoly on the processing of these vital materials. As reported by Finance & Commerce, this is the result of a deliberate, multi-decade strategy articulated by Deng Xiaoping in 1992: “The Middle East has oil, China has rare earths.” Today, China uses this dominance as a geopolitical weapon, creating an export “spigot” it can tighten at will, holding the American defense and technology sectors hostage. The depth of this dependency is starkly illustrated by a single fact: America’s only operational rare earths mine, in California, must still ship its raw ore to China to be processed.

This is the crisis that Oklahoma aims to solve. The state is not trying to be a mining hub; it lacks the major deposits for that. Instead, it is pursuing a more cunning “packer” strategy, as one CEO put it, using a Texan cattle industry analogy. The “rancher” (the miner) takes the most risk for the lowest margin; the “packer” (the refiner) makes the real money. Oklahoma wants to be America’s “packer.” Championed by Governor Kevin Stitt, the state is leveraging its central location, robust infrastructure, and experienced energy workforce to attract a wave of investment in high-value processing. Already, facilities are in the works for not just rare earth magnets (USA Rare Earth in Stillwater), but for the nation’s only nickel refinery (Westwin Elements) and its largest lithium refinery (Stardust Power).

This is where the first great challenge arises, one rooted in the very soil of the state. While processing will happen in Oklahoma, much of the raw material from new American mines will have to come from the land of its neighbors. This will require convincing ranchers and landowners, many of whom have held a 1907-era view of land ownership for generations, that allowing mining on their property is a good thing. It means asking a culture steeped in tradition to accept that future fortunes are more likely to be made from dysprosium and neodymium than from beef and soybeans. This is a delicate and difficult conversation, a clash of the state’s rugged past with its potential high-tech future.

The second challenge is financial. The oil bust left deep scars on the state’s economy. The capital to simply throw money at massive new industrial projects isn’t there anymore. The only way this works is through outside investment. The state’s strategy seems to acknowledge this, successfully attracting international partners from Australia, Belgium, and Japan. The critical question, however, is whether enough American capital will step in to finance the rest. The success of this venture hinges on convincing investors that a long-term bet on America’s domestic supply chain is a safe one, even if the upfront costs are immense.

If that financing can be secured, there is no question that the intellectual capital is there. Stillwater, home to one of the new magnet facilities, is also home to Oklahoma State University—an institution fully stocked with the labs, scientific tools, and brainpower needed to push the state into the future. Oklahomans, when they set their minds to something, possess a unique and powerful blend of ingenuity and grit. If they embrace this challenge, I believe they could blow everyone’s mind in the process.

The pieces are all there for a remarkable economic renaissance. But it requires navigating a complex terrain of cultural persuasion and financial necessity. The state will need help, both from outside investors and from a federal government that can provide stability and incentives. The biggest question of all may be whether Oklahoma, in its proud and stubborn independence, will be willing to accept that help when it’s offered. If it can, the old oil state may just find itself at the center of a new, more valuable, and more enduring kind of gold rush.