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.