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<span class="date">Published June 11, 2025</span>
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The US defence sector is dependent on critical minerals for its advanced weapon systems,<br />
but it has relied on China for the majority of those inputs. As Beijing tightens export restrictions,<br />
the Pentagon faces a growing risk to military readiness and supply chain security.
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<h3 style="margin-top: 100px;">Production and supply</h3>
<p>China dominates the global supply of rare earths,<br />
including controlling more than 90 per cent of the world’s processing and refining.<br />
It also has an edge in most other critical minerals, such as refined gallium,<br />
of which it controls 98.8 per cent of the output.</p>
<p>
Top producers of rare earth elements
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Reserves by country in 2024 <i>(millions of tonnes)</i>
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<h3 style="margin-top: 100px; margin-bottom: 20px;">A closer look</h3>
<p style="color: white;">In recent years, Beijing has leveraged its dominance in critical mineral<br />
production and refining as a key negotiating point in trade wars, as well as targeting the defense<br />
industries in the US and its allies.</p>
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<h3>Why it matters?</h3>
<p>These elements are essential to various American advanced weapon systems,<br />
including precision-guided missiles, fighter jets, naval warships, submarines and advanced radar systems.</p>
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More than 80 per cent of the Pentagon’s weapons system supply chains reportedly incorporate antimony, gallium, or germanium.
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<p>In most of the applications, these materials cannot be substituted,<br />
meaning that the Chinese export restrictions make the US defence industry supply chain more vulnerable,<br />
not just by limiting material supply but by blocking access to separation and refining technology critical to building independent US capacity.</p>
<section class="standar">
<h3>China’s lead widens</h3>
<p>While the Pentagon has invested over $439 million toward building domestic supply chains since 2020,<br />
and awarded MP Materials $35 million for a heavy rare earths processing facility in 2022, a significant amount of work is still<br />
needed to build critical mineral supply chain independent from China.</p>
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