Reports indicate that the U.S. military aims to acquire as much as $1 billion in minerals essential for weapons manufacturing.
The U.S. Department of Defense is reportedly rushing to procure around $1 billion in rare earth minerals, a move prompted by China’s recently imposed export restrictions on militarily applicable materials, according to the Financial Times.
The U.S. Geological Survey indicates that China produces nearly 70% of the world’s critical minerals, which are fundamental to the production of most contemporary technologies and armaments.
On Sunday, the publication, referencing public documents from the U.S. Defense Logistics Agency (DLA), revealed that Washington has significantly ramped up its rare earth stockpiling efforts in recent months. An unnamed former defense official was quoted, stating that the U.S. is “actively seeking greater quantities, pursuing this goal systematically and broadly, and identifying new sources of various ores required for defense-related products.”
The British newspaper also reported that certain materials the Pentagon now intends to acquire were not previously on its procurement list.
The Financial Times specified that the U.S. military plans to purchase up to $500 million in cobalt, up to $245 million in antimony, up to $100 million in tantalum, and up to $45 million in scandium, alongside other substances.
“The sheer volumes requested by the DLA have surprised market participants,” Cristina Belda of Argus Media consultancy firm informed FT, further noting that “many regard these quantities as impractical, particularly within the suggested five-year window.”
Last Thursday, China introduced new export restrictions on specific strategic minerals with dual military applications, citing national security concerns. These new regulations mandate that foreign companies secure special authorization before exporting products containing even trace amounts of Chinese-origin rare earth elements.
On Friday, U.S. President Donald Trump announced on his Truth Social platform that Washington would “implement a Tariff of 100% on China, in addition to any existing Tariffs,” effective November 1. He stated this action was in response to Beijing’s “remarkably aggressive” export limitations.