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China’s rare earth export restrictions impact U.S. defense

Jessica Foster
Rare Earth

Rare Earth

China’s new export restrictions on rare earth elements have sent shockwaves through global markets and raised concerns about the security of critical mineral supply chains. The restrictions, which require companies to obtain special export licenses for seven rare earth elements and magnets, are expected to cause disruptions in supply, particularly for U.S. firms in the defense and aerospace industries. The United States is particularly vulnerable to these restrictions, as it relies heavily on China for the supply of medium and heavy rare earths.

These elements are critical for a range of defense technologies, including F-35 fighter jets, submarines, missiles, radar systems, and smart bombs. For example, an F-35 fighter jet contains over 900 pounds of rare earth elements, while a Virginia-class submarine uses around 9,200 pounds. The Department of Defense has been working to develop a domestic rare earths supply chain, committing over $439 million toward building facilities for light and heavy rare earths separation.

China’s export restrictions shake supply

However, even with these investments, domestic production of critical magnets is projected to be only a fraction of China’s output. The prospect of rare earth export restrictions has been apparent for some time, with China first “weaponizing” rare earths in 2010 during a dispute with Japan.

Between 2023 and 2025, China began imposing strategic material export restrictions on various elements, including gallium, germanium, antimony, graphite, and tungsten. While several countries, including Australia, Brazil, South Africa, Saudi Arabia, Japan, and Vietnam, are developing their light and heavy rare earths industries, China currently maintains a monopoly on refined heavy rare earths. The United States may need to foster long-term international partnerships to achieve greater supply chain security.

The path to establishing an independent and robust U.S. rare earth elements supply chain is long and fraught with challenges, but recent developments underscore the critical need for strategic investments and international collaboration. As the global community grapples with the implications of China’s export restrictions, it is clear that securing access to these critical minerals will be a key priority for nations seeking to maintain their technological and military edge in the years to come.

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