This is the crux of the matter. Capitalism won't tolerate such high production costs; all they want is more profit!They don't need education. They will just pay Chinese existing engineers working in rare earth companies 500K-1 million dollar salaries and those engineers will happily move to US or other countries. Their biggest advantage is extreme wealth.
They also don't need to worry about being efficient about their rare earth production either. They will just pay 10-20 times the current cost if needed to achieve non-chinese production.
Even if they poached every engineer from China, the West would still have to rebuild its industrial chain from scratch. And even if they did succeed, it still wouldn't generate enough profit. Therefore, from the outset, no one would genuinely want to change the status quo.