America’s advanced weapons manufacturers are facing a critical shortfall of rare-earth minerals imported from China due to escalating trade tensions with Beijing. New export licensing restrictions imposed by China on seven rare earths are expected to disrupt the supply chain for US defense and aerospace companies, impacting the production of fighter jets, submarines, drones, and other crucial military equipment. The Center for Strategic and International Studies and UK thinktank Chatham House have both warned about the potential damage to the US defense industry and national security.

China’s dominance in rare earth production poses a strategic advantage in the US-China competition for military supremacy, with the minerals essential for various industrial and military applications, including hi-tech magnets used in electric vehicles. The US, currently reliant on China for 70% of rare earths, has sought alternative sources from countries like Ukraine and Greenland, leading to diplomatic challenges.

The vulnerability in rare-earth mineral supply chain has broader implications beyond defense, affecting industries such as electric vehicles. The US-China trade war has highlighted the importance of diversifying rare earth sources and reducing reliance on China. As China leverages its control over rare earths to exert influence in supply chains crucial to American primacy, there are concerns about the long-term impact on US competitiveness in advanced technologies and military capabilities. Addressing these challenges will require strategic planning and cooperation to mitigate risks and ensure resilience in critical supply chains.