Global supply chain crisis for critical minerals used in defense equipment due to Chinese control

From Yahoo Finance.: 2025-03-21 14:47:00

The modern battlefield relies heavily on critical minerals like tungsten, gallium, and rare earth elements for military hardware. With China controlling a significant portion of global processing capacity, NATO allies are scrambling to secure alternative sources due to recent export restrictions, highlighting the West’s vulnerability amid the Russia-Ukraine conflict.

Tungsten, essential for armour-piercing munitions and missile systems, is a strategically significant mineral. The US, heavily reliant on Chinese imports for tungsten, faces supply chain vulnerabilities. Despite efforts to counter this through stockpiling and investment, the Pentagon warns that without tungsten, advanced military equipment production is at risk.

Gallium, vital for radar systems and electronic warfare, faces supply chain disruptions due to China’s export restrictions. With the US lacking domestic production, alternative sources like Ukraine and Greenland are being explored. The delay in building independent supply chains could disrupt radar systems, electronic warfare capabilities, and missile defense technologies.

China’s strategic investments in securing control over key materials, such as lithium, graphite, nickel, and cobalt, have been highlighted in a recent report. Chinese dominance in critical mineral production poses challenges for defense firms globally. The proposed US-Ukraine critical minerals and rare earths deal aims to address these issues and reduce dependence on China. US President Donald Trump emphasized the importance of critical minerals in recent US-Ukraine negotiations. Ukraine’s mineral reserves could reduce Western reliance on China and leverage military aid for economic benefits. NATO and allies are strengthening critical mineral supply chains, while DARPA launches initiatives to ensure domestic production.

Trump signed an executive order to enhance domestic production of critical minerals under the Defense Production Act. The order directs federal agencies to expedite mining projects and prioritize mineral production on federal land. Initiatives like the Open Price Exploration for National Security program aim to increase transparency in the critical minerals market.

Industry leaders warn of the vulnerability to critical mineral supply disruptions and the need for decisive action. The defence industry relies heavily on the mining sector, highlighting the importance of securing critical minerals. The fight for critical minerals will shape global military power as the West aims to secure its resources before China strengthens its grip.

Read more: the supply chain crisis impacting defence