The US defence sector is dependent on critical minerals for its advanced weapon systems,
but it has relied on China for the majority of those inputs. As Beijing tightens export restrictions,
the Pentagon faces a growing risk to military readiness and supply chain security.
Production and supply
China dominates the global supply of rare earths,
including controlling more than 90 per cent of the world’s processing and refining.
It also has an edge in most other critical minerals, such as refined gallium,
of which it controls 98.8 per cent of the output.
Top producers of rare earth elements
Reserves by country in 2024 (millions of tonnes)
A closer look
In recent years, Beijing has leveraged its dominance in critical mineral
production and refining as a key negotiating point in trade wars, as well as targeting the defense
industries in the US and its allies.
Why it matters?
These elements are essential to various American advanced weapon systems,
including precision-guided missiles, fighter jets, naval warships, submarines and advanced radar systems.
More than 80 per cent of the Pentagon’s weapons system supply chains reportedly incorporate antimony, gallium, or germanium.
In most of the applications, these materials cannot be substituted,
meaning that the Chinese export restrictions make the US defence industry supply chain more vulnerable,
not just by limiting material supply but by blocking access to separation and refining technology critical to building independent US capacity.
China’s lead widens
While the Pentagon has invested over $439 million toward building domestic supply chains since 2020,
and awarded MP Materials $35 million for a heavy rare earths processing facility in 2022, a significant amount of work is still
needed to build critical mineral supply chain independent from China.
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