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 mandate is expected to have significant supply chain implications for the entire American defense industrial base.
The prohibition on Chinese rare earth magnets is codified in the National Defense Authorization Acts (NDAA) for fiscal years 2023 and 2024, with a hard deadline of January 1, 2027. This rule bars defense contractors from using magnets and specific metals if any stage of production, from mining to fabrication, occurred in China, Russia, Iran, or North Korea. The move was spurred by incidents like the 2022 discovery of a Chinese-made alloy in the F-35's turbomachine, which briefly halted deliveries. China's market position presents a significant challenge, as it controls roughly 70% of rare earth extraction and 90% of the complex processing required to turn them into materials for magnets. This dominance extends to manufacturing, with China producing over 90% of the world's rare earth magnets. The U.S., in contrast, is heavily reliant on imports, with 71% of its rare earth imports coming from China in 2025. These materials are critical for a wide array of U.S. military hardware. A single F-35 fighter jet incorporates approximately 418 kilograms (about 920 pounds) of rare earth elements. These are essential for high-performance samarium-cobalt magnets used in avionics, radar, and electronic warfare systems that must withstand extreme temperatures. Virginia-class submarines and Arleigh Burke-class destroyers also require tons of these materials for systems like propulsion and missile guidance. To counter this dependency, the Pentagon and other government agencies are investing heavily to build a domestic supply chain. Between 2020 and 2024, the Pentagon awarded over $439 million to establish domestic rare earth capabilities. This includes significant investments in companies like MP Materials, which operates the only active rare earth mine in the U.S., and USA Rare Earth, which is developing a magnet manufacturing facility in Oklahoma. The strategy involves creating an integrated "mine-to-magnet" supply chain within the United States and with allied nations. For instance, the U.S. government has taken stakes in MP Materials to accelerate domestic magnet production. Partnerships with companies like Australia's Lynas Rare Earths, the largest producer outside of China, are also being pursued to bolster supply. These initiatives aim to ensure that by the 2027 deadline, the U.S. defense industrial base has qualified, non-Chinese sources for these vital components.
