Pentagon to Ban Chinese Rare Earth Magnets
The Pentagon will prohibit the use of rare earth magnet materials from China in U.S. military platforms starting in 2027. The move is set to create a major supply squeeze for the American defense industry and accelerate efforts to build alternative supply chains for critical minerals.
The ban is codified under 10 U.S.C. §4872, implemented via Defense Federal Acquisition Regulation Supplement (DFARS) 252.225-7052, and was driven by provisions in the 2023 and 2024 National Defense Authorization Acts. The rule prohibits magnets where any production stage—from mining and refining to melting and fabrication—occurs in China, Russia, Iran, or North Korea. China currently dominates the global market, accounting for approximately 70% of rare earth mining and over 90% of the refining and magnet production. This gives Beijing significant leverage over nearly every aspect of the market for the high-performance magnets essential for modern defense technology. A key catalyst for the 2027 deadline was a 2022 incident where a Chinese-made samarium-cobalt alloy was discovered inside the turbomachine pump of an F-35 fighter jet. The discovery prompted a temporary halt in deliveries and was described by a congressional aide as a "Sputnik moment" for the defense industry. The U.S. military's dependence is extensive; an F-35 fighter contains nearly 1,000 pounds of rare earth materials, while a Virginia-class submarine requires 9,200 pounds. These materials are critical for the guidance systems in Tomahawk missiles, the actuators in JDAM smart bombs, and in radar and sonar systems. To counter this vulnerability, the Department of Defense has invested over $439 million since 2020 to establish a domestic "mine-to-magnet" supply chain. Companies like MP Materials are building out facilities in California and Texas to create an integrated domestic supply chain, from mining to magnet production. Beyond domestic production, the U.S. is actively forming strategic partnerships with allies to diversify its supply sources. Agreements have been made with countries like Australia and Japan to collaborate on mining, processing, and co-financing exploration for critical minerals.
