The Pentagon plans to spend about $1 billion on the procurement of strategically important minerals to strengthen the United States’ independence from supplies from China. In recent months, the U.S. Department of Defense’s Logistics Agency (DLA) has been actively exploring opportunities to purchase cobalt worth up to $500 million, antimony — up to $245 million from US Antimony Corporation, tantalum — up to $100 million from an unnamed U.S. manufacturer, and scandium — up to $45 million from Rio Tinto and APL Engineered Materials.
This is reported by Business • Media
Strategic Importance of Minerals for the U.S.
Critical minerals are essential for the national security of the United States, as they are used in nearly all areas of defense production. In Washington, there are concerns that if supplies from China are cut off, there is a risk of losing access to advanced technologies and a decline in the country’s defense capabilities.
“States are wary of losing the ability to utilize high-tech capabilities if China halts the supply of these critical minerals.”
New Export Restrictions from China and International Cooperation
China has announced another round of export restrictions on rare earth metals, which will take effect on December 1. The main goal of these measures is to prevent the use of rare earth metals in military technologies. China remains the only country that fully refines samarium — a metal necessary for the production of American F-35 fighters and missile systems.
At the same time, the Trump administration had already considered acquiring a stake in Critical Metals to gain a direct interest in the largest rare earth element deposit, Tanbreez, in Greenland. Washington has also recently acquired stakes in Lithium Americas and MP Materials. Approximately $290 million needs to be invested to launch the Tanbreez project into commercial production.
Additionally, Turkey is negotiating with the U.S. regarding the exploration of rare earth mineral reserves in western Anatolia. These negotiations have intensified after similar agreements with China and Russia were suspended due to disagreements over technology transfer and raw material processing.
It is also worth noting that one of the leaders in the U.S. financial sector — JPMorgan Chase — has announced plans to invest up to $10 billion in companies that are strategically important for national security and the economy of the country. This will be part of a large-scale ten-year initiative worth $1.5 trillion aimed at supporting key sectors: defense, energy, and high-tech manufacturing.