China is restricting the supply of critical minerals to Western defense manufacturers, creating production delays and driving up costs across the U.S. defense sector. These minerals — essential for everything from bullets to advanced weapons systems — are increasingly difficult to source as firms scramble to find non-Chinese alternatives.
The Wall Street Journal (gated) carry the report.
In summary:
- Earlier this year, amid escalating U.S.-China trade tensions, Beijing tightened export controls on rare earth elements. Although some shipments resumed after Washington made trade concessions in June, China continues to restrict access to minerals used specifically for defense. China currently supplies about 90% of the world’s rare earths and dominates production of many other strategic materials.
- One U.S. drone parts manufacturer reported delays of up to two months while seeking alternative sources of Chinese-made magnets. Industry sources say prices for certain minerals have surged, with one company offered samarium — critical for jet fighter engine magnets — at 60 times the usual cost.
- The situation underscores the U.S. military’s heavy dependence on Chinese supply chains. Many advanced defense technologies — including drone motors, missile guidance systems, night-vision goggles, and satellite components — rely on rare earths and minerals largely sourced from China. The supply squeeze is giving Beijing strategic leverage amid ongoing geopolitical and trade tensions.
This article was written by Eamonn Sheridan at investinglive.com.
