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3w ago

China’s Rare Earth Export Curbs Extend U.S. Defense Delays and Trigger Cost Surges

Pentagon emergency powers address critical mineral shortages through a $400 million MP Materials investment.

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China has a stranglehold over the rare earths supply chain. Photo: Reuters
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Overview

  • China continues to withhold key rare earths and critical minerals used in defense, forcing U.S. weapons and drone makers to postpone production by up to two months.
  • Costs for certain defense-critical minerals, including samarium for jet engine magnets, have surged up to 60 times since Beijing imposed export curbs.
  • According to defense analytics firm Govini, more than 80,000 components in U.S. military systems depend on minerals now blocked under Chinese controls.
  • The Department of Defense has invoked the Defense Production Act and acquired a 15 percent stake in MP Materials with a $400 million investment to shore up domestic supply.
  • U.S. and allied efforts to build alternative rare earth supply chains through new mines, processing facilities and stockpiles face regulatory and technical hurdles that will take years to overcome.