Pentagon plans $1 billion mineral stockpile to cut US reliance on China - FT
Photo: Pentagon to buy strategic minerals for weapons production (Wikimedia/Touch Of Light)
The Pentagon plans to buy $1 billion worth of minerals used in weapons production, aiming to reduce its reliance on Chinese rare earths, Financial Times reports.
In recent months, the Pentagon has been considering purchases of several key minerals, including:
- Cobalt worth up to $500 million;
- Antimony worth up to $245 million from US Antimony Corporation;
- Tantalum worth up to $100 million from an unnamed US producer;
- Scandium worth up to $45 million from Rio Tinto and APL Engineered Materials, a chemical manufacturing company based in Illinois that has offices in Japan and China.
The Financial Times said these critical minerals are essential for US national security because they are used in the production of radar and missile systems.
"China's ability to turn off the supply of these critical minerals would have a direct, palpable, and adverse effect on the US' ability to field the kind of high-tech capabilities that we're going to need for any kind of strategic competition or conflict," said Stephanie Barna, a lawyer at Covington & Burling in Washington.
On October 9, China announced new export controls on rare earth minerals and related technologies. From now on, foreign companies must obtain Beijing's approval to export magnets containing even small amounts of Chinese-origin minerals.
The move gives China more leverage over the global rare earth supply chain.
On October 11, the United States imposed 100% tariffs on Chinese goods and introduced export controls on all critical software.
US President Donald Trump said the decision was a response to Beijing's "extraordinarily aggressive position." The restrictions will take effect on November 1, 2025, or earlier.
