China’s Mineral Curbs Impact U.S. Defense Supply Chain
China has started to limit the export of critical minerals to Western countries, especially those used in defense. This move is affecting many U.S. defense companies. These companies are now facing delays and higher costs while trying to find new suppliers from other countries.
Delays in U.S. Military Supplies
One U.S. drone parts supplier said they had to wait up to two months to get magnets that were not made in China. This shows how hard it is to replace Chinese materials. Prices for some rare minerals used in defense have increased a lot. For example, samarium, which is used in jet engines, is now being offered at 60 times the normal price.
China’s Control Over Rare Earths
China supplies about 90% of the world’s rare earth minerals. These minerals are very important for making things like missiles, satellites, night-vision tools, and drone motors. Although the U.S. has been trying to reduce its dependence on China, many of these minerals are too expensive to produce outside China.
Rising U.S.-China Tensions
The restrictions are happening during a time of high tension between the U.S. and China. In April, China made rare earth exports even harder after the U.S. announced new tariffs. The U.S. and China have since held talks to resolve these issues.
Talks Making Progress
U.S. Trade Representative Jamieson Greer said that discussions with China on rare earth supplies are “about halfway there.” Talks were recently held in Stockholm. As a result, rare earth magnet shipments from China to the U.S. rose to 353 tons in June, up from just 46 tons in May. However, this is still less than before the restrictions started.
U.S. Opens First Rare Earth Mine in 70 Years to Cut China Dependence
On July 11, 2025, the United States opened its first rare earth mine in 70 years—Brook Mine, located in northern Wyoming. Owned by Ramaco Resources, the mine holds an estimated 1.7 million tons of rare earth minerals. These minerals are crucial for defense, technology, and clean energy. Currently, China supplies about 90% of the world’s rare earths, making the U.S. heavily dependent. The U.S. Energy Department called this a “historic discovery” and a major step toward energy security. Brook Mine contains six of the 17 rare earth elements and is expected to supply domestic needs for the next 150 years. Ramaco plans to mine, process, and sell the materials entirely within the U.S., reducing foreign dependence.
What Happens Next?
President Trump is expected to decide by August 12 whether the current trade truce with China will continue. Technical issues are still being discussed. Meanwhile, the U.S. military and defense companies remain heavily dependent on Chinese mineral supplies.
Conclusion
China’s tight control over critical minerals is giving it an advantage in the global power struggle. It highlights how much the U.S. defense industry relies on China, even during tense political times. Until alternatives are found, production delays and high costs are likely to continue.
