The US military is heavily reliant on rare earths, powerful materials crucial to defense technology. China dominates global supply chains for these metals, commanding about 85% of processing and 90% of magnet production. The US has been negotiating with China to increase exports, but Beijing maintains significant leverage.
Rare earths are essential components in various military systems, including fighter jets, warships, and submarines. The US was once a major producer, but environmental concerns and financial challenges led to its decline. Today, the country is home to only one operational rare-earth mine.
The Pentagon has poured millions into critical minerals projects and recently signed a multibillion-dollar deal with MP Materials, which will build a rare-earth magnet factory with government support. However, China’s interventionist minerals policy and dominance in production and processing pose significant challenges for US competition.
The US Department of Defense is requiring defense contractors to purchase only rare-earth magnets without Chinese-sourced minerals by 2027. Despite the Pentagon’s efforts, forging new supply chains will take time due to the intellectual firepower disparity between the US and China.
Source: https://foreignpolicy.com/2025/08/11/china-rare-earths-us-defense-military-pentagon-supply-chain