Worthy Christian News > World News > China’s Critical Minerals Clampdown Delays U.S. Defense Production, Sparks Global Scramble

China’s Critical Minerals Clampdown Delays U.S. Defense Production, Sparks Global Scramble

by Worthy News Washington D.C. Bureau Staff

(Worthy News) – China’s tightening grip on the export of critical minerals has thrown U.S. defense manufacturers into crisis mode, delaying weapons production, driving up costs, and exposing the Pentagon’s deep dependence on Beijing for vital components, according to a Wall Street Journal investigation.

Beijing has reportedly restricted shipments of rare earth elements and other minerals essential to defense systems, despite allowing partial resumption of exports after President Trump’s June trade negotiations with Chinese officials. China dominates the global rare earths market, supplying nearly 90% of all rare earth elements and controlling key minerals like germanium, gallium, and antimony–all crucial to missile systems, night-vision gear, and jet engines.

The impact on U.S. defense readiness is growing. A U.S.-based drone-parts manufacturer was recently forced to delay military orders by two months due to an inability to obtain Chinese-made magnets. Other suppliers report paying up to 60 times more for rare earth elements like samarium, which is needed for high-temperature-resistant magnets in fighter jets.

“The costs of defense systems are rising rapidly,” said one supplier, “and the delays are rippling across multiple programs.” With Beijing’s restrictions in place, companies are scrambling to secure non-Chinese alternatives. However, Western supply chains for these niche elements remain thin, with some materials economically unfeasible to mine or refine outside China.

Leonardo DRS, a major U.S. defense contractor, is already down to its “safety stock” of germanium, CEO Bill Lynn warned on a recent earnings call. Germanium is a critical component in infrared sensors used in missiles and satellite technology. Lynn said the company is actively seeking alternative suppliers but stressed that “material flow must improve” to maintain timely deliveries in the second half of 2025.

The squeeze comes despite the Pentagon’s 2027 mandate that contractors eliminate China-sourced rare-earth magnets. While some defense firms have stockpiled magnets, most maintain only a few months’ worth of reserves for other critical minerals.

Drone startups–lacking capital and logistical muscle–are especially vulnerable. Chris Thompson of New Hampshire-based ePropelled said his company had to delay shipments after a Chinese supplier demanded product drawings, buyer lists, and proof the magnets wouldn’t be used for military purposes. “Of course we are not going to provide the Chinese government with that information,” said Thompson, whose firm supplies U.S. and Ukrainian drone builders.

China’s controls go beyond minerals. Since December, it has banned sales of germanium, gallium, and antimony to the U.S.–metals used in bullets, armor, and night-vision systems. Exporters must now provide extensive documentation and images proving civilian end-use, a tactic Western executives believe is aimed at hobbling military production.

One Chinese shipment of 55 metric tons of Australian antimony bound for a U.S. contractor was detained in the Chinese port of Ningbo for three months earlier this year. It was released only after Beijing forced the shipment to be rerouted back to Australia and sealed materials were discovered compromised, sparking concerns of tampering.

Efforts to secure domestic and allied production are underway. The Department of Defense has launched the Critical Minerals Forum and awarded millions in grants to companies like Canada’s 5N Plus and MP Materials, which operates the largest rare-earths mine in the Americas. The Pentagon also agreed to a $400 million equity deal with MP Materials in July to bolster magnet manufacturing.

But industry leaders warn the buildup will take years. “Unless these defense contractors get directly involved in sourcing minerals themselves,” said Nicholas Myers, CEO of Phoenix Tailings, “they simply won’t get what they need.”

More than 80,000 parts used in U.S. weapons systems depend on minerals now subject to Chinese restrictions, according to defense software firm Govini. Nearly every critical mineral the Pentagon relies on touches at least one Chinese-controlled supplier–giving Beijing powerful leverage in a time of mounting geopolitical friction.

Neither China’s Foreign Ministry, the Pentagon, the State Department, nor the White House offered public comment on the growing crisis.

Latest Worthy News