Highlights

• The Department of Defense is urgently addressing vulnerabilities in critical minerals supply chains.
• China poses significant disruption risks to defense production.
• The Department of Defense has invested over $439 million since 2020 to bolster domestic rare earth supply chains.
• Partnerships have been established with allied nations such as Canada, UK, and Australia.
• Current challenges include:
  • Limited domestic mining infrastructure
  • Skilled labor shortages
  • Inadequate capacity to meet growing defense production demands

The Department of Defense (DOD) underscores the urgent need to secure reliable sources (opens in a new tab) of critical minerals, integral to defense systems like drones, fighter jets, and submarines. Adam Burstein, the technical director for strategic and critical materials, highlighted vulnerabilities in U.S. supply chains during a presentation at the Naval War College. Chief among these concerns is China's demonstrated ability to disrupt supplies of key materials like gallium, germanium, and antimony, posing significant risks to defense readiness. Domestically, challenges include limited mining and processing infrastructure, a shortage of skilled labor, and inadequate capacity to meet growing defense production demands.

Investment Levels

Since 2020, the DOD has invested over $439 million to bolster domestic rare earth supply chains as part of a five-year strategy, though the U.S. currently operates only one active rare earth mine. Partnerships with allies, including Canada, the UK, and Australia, are central to diversifying supply sources, with agreements under the Defense Production Act enabling direct investments in allied nations to secure materials like cobalt and tungsten. Additionally, the DOD employs stockpiling as a risk mitigation strategy, creating buffers against supply shocks and demand spikes.

Need More

Despite these efforts, the DOD avoids concrete timelines and goals for achieving supply chain resilience and largely omits discussions on environmental and regulatory challenges that could impede progress. Broader intersections with other industries, such as renewable energy, are minimally addressed, and the geopolitical complexities of relying on allied nations for critical resources remain unexplored. While the DOD's strategy is critical for national security, the broader implications and obstacles warrant deeper examination to ensure a robust and sustainable supply chain.

The DOD avoids the deeper analysis featuring just how ahead China has secured, and the unfortunate reality that $439 million is a drop in the bucket of what is needed.