How US Defence Industry Dodged a Rare-Earth Shortage After China’s Curbs

Washington: The United States defence industry managed to avert an acute rare-earth metals shortage triggered by tighter export controls from China — the world’s dominant supplier of rare earth elements vital for advanced military systems — through a combination of domestic supply expansion, diversification efforts and strategic stockpiling. China’s export curbs in 2025 on heavy rare earths, including those used in high-performance magnets integral to weapons systems and defence electronics, raised concerns that defence supply chains could be severely disrupted.

To manage the disruption risk, the U.S. accelerated development of its own rare earth supply capabilities, notably supporting companies such as MP Materials, which operates the Mountain Pass mine in California and has been expanding domestic production and refining capacity for rare earth oxides and permanent magnets. Increased government investment and strategic partnerships have helped bolster supply resilience and reduce reliance on Chinese imports.

Meanwhile, industry and government stockpiled critical elements and components ahead of China’s tightened controls, easing immediate shortages. Defence contractors also pursued alternative sourcing from allied countries and new processing facilities, and accelerated research into rare-earth-free technologies or substitutes that could reduce dependency on constrained elements in certain applications.

Although challenges remain and the U.S. still imports significant quantities of rare earth materials, these proactive steps have provided the defence sector with breathing room and a pathway toward greater supply security as it works to build a more diversified and resilient rare earth ecosystem.