China Tightens Grip on Mineral Exports, Impacting Western Defense Sector
CHINA, AUG 5 – China controls about 90% of critical minerals, causing soaring prices and production delays for U.S. defense manufacturers who are seeking alternative suppliers and boosting domestic efforts.
- Earlier this year, Beijing restricted rare earth exports, causing delays for Western defense companies in producing military hardware.
- Rising U.S.-China trade tensions triggered the clampdown earlier this year as Beijing restricted exports of rare earths, which supply around 90% of global demand.
- Buyers now face detailed disclosure demands for shipments, including product drawings, production-line images, and client lists, Leonardo DRS CEO Bill Lynn said Wednesday.
- A drone-parts manufacturer delayed orders by up to two months as Lockheed Martin and Boeing rush to secure non-Chinese sources, with reserves running dangerously low.
- The Pentagon told all contractors to stop buying magnets with China-linked minerals by 2027, after investing $400 million in MP Materials in July.
35 Articles
35 Articles
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