Rare earth magnets a US-China 'battlefield'
The geopolitical competition between the United States and China is increasingly focused on rare earth magnets, a critical resource for building military equipment at scale. Control over the supply chain for these materials is seen as a key factor in national security and technological supremacy.
China currently accounts for 85-90% of the global production of powerful neodymium-iron-boron (NdFeB) magnets. This dominance extends across the entire supply chain, from mining 69% of rare earth ores to refining 85% of the purified elements needed. The U.S., in contrast, is almost entirely dependent on imports for these materials, with 90% of its supply coming from China. Each Lockheed Martin F-35 fighter jet requires approximately 920 pounds (417 kg) of rare earth materials. These are crucial for components like flight control actuators, radar systems, and electronic warfare suites that must withstand extreme temperatures. Other military applications include precision-guided munitions, Tomahawk cruise missiles, and the propulsion systems of naval vessels. In response, the U.S. government is aggressively funding a domestic supply chain. The Department of Defense has become the largest shareholder in MP Materials, the only integrated rare earth mining and processing facility in the U.S. The Pentagon has committed to buying all magnets from a new MP Materials factory in Texas and has guaranteed prices well above current market rates to ensure its viability. Multiple "mine-to-magnet" projects are underway. MP Materials is investing over $1.25 billion in a new Texas campus expected to produce 10,000 metric tons of NdFeB magnets annually starting in 2028. USA Rare Earth also plans to produce 10,000 metric tons per year at a new facility in Oklahoma, supported by up to $1.6 billion in government funding and loans via the CHIPS and Science Act. The strategy also includes diversifying sources and technologies. The Pentagon is investing in companies like ReElement Technologies, which uses advanced chromatography to recycle manufacturing waste and old electronics into high-purity rare earths. Tech giants are also contributing, with Microsoft developing an "urban mining" program to recover rare earths from its own data centers.
