China, the world’s largest producer of rare earth elements, has escalated its export restrictions on these critical minerals as trade tensions with the United States continue. This strategic move is placing significant strain on Western defense industry giants.
China supplies approximately 90% of the rare earth elements essential to defense technologies. Its decision is directly impacting over 80,000 components used in military systems. According to The Wall Street Journal, the new restrictions have caused major disruptions in the U.S. defense supply chain. Many manufacturers have been forced to delay deliveries by at least two months, while companies are now scrambling to find alternative sources for the required materials.
Red Flags in Military Systems
The sector hit hardest by these restrictions is unmanned aerial vehicle (UAV) production. However, advanced military equipment—ranging from radar systems and missile guidance mechanisms to satellite communication infrastructure and night vision technologies—also relies heavily on these rare minerals.
Gallium, in particular, plays a critical role in the production of gallium nitride (GaN) chips, which are used in active electronically scanned array (AESA) radars and electronic warfare systems in combat aircraft. These chips are vital to the high performance of platforms such as the F-35 fighter jet and the THAAD missile defense system.
More than 80,000 components within the Pentagon’s weapons systems depend on such strategic minerals. Nicholas Myers, CEO of Massachusetts-based Phoenix Tailings, remarked, “Major defense contractors are now fully aware of the risks tied to their reliance on Beijing.”
Urgent Warning: Need for Alternative Sources
China’s tightened export controls on rare elements have exposed structural vulnerabilities in the U.S. defense industry. Without new supplier nations to fill the gap, many defense programs are likely to face production delays and operational setbacks.
