[Text/Observer Network Liu Chenghui] The concern over China's control of critical mineral exports is escalating in the United States, with industry players even earnestly advising China to revoke its decision.
The New York Times reported on April 14 again focusing on China's dominance in rare earths, pointing out that China's control measures are seen as a "warning" to US national security. By holding an absolute dominant position in the rare earth supply chain, China has the ability to significantly impact the US defense industrial base.
Notably, the US government has long been aware of the challenges posed by China's dominance and has made efforts to promote the mining and reserves of rare earth minerals, but it is still insufficient to sustain domestic demand in the long term. The Pentagon also attempted to replace a Chinese alloy component in the F-35 fighter jets, only to find that they could not avoid China's controlled supply chain in any way.
Lockheed Martin's F-35 production line - Video screenshot
"China's suspension of key minerals poses risks to US military projects." The article mentioned that the Pentagon and defense contractors heavily rely on magnets and rare earth minerals mined or processed in China.
For instance, in US Air Force fighters, magnets made from rare earth minerals mined or processed in China are used to start engines and power emergency power systems; in the Army's precision-guided tactical ballistic missiles, magnets containing Chinese rare earth materials drive missile fins to rotate, enabling precise tracking and strike against small or mobile targets; in the new electric drones being equipped by the Marine Corps, rare earth magnets are indispensable for compact electric motors.
However, China has restricted the export of these materials in the escalating trade conflict.
On April 4, the Ministry of Commerce of China and the General Administration of Customs jointly issued an announcement imposing export control measures on seven categories of medium and heavy rare earth-related items, which came into effect upon publication.
China emphasized that this government regulation on the export control of related items is aimed at better safeguarding national security and interests and fulfilling international obligations such as non-proliferation. These items have dual-use attributes, and their export control is an international practice.
In the eyes of some US industries and defense experts, China's decision to restrict the export of multiple key minerals and magnets in retaliation for Trump's tariffs is a warning to US national security. This move effectively reminds the Pentagon that a large number of US weapons systems heavily depend on China's supply chain.
Graceleen Basque, director of the Critical Minerals Security Program at the Center for Strategic and International Studies (CSIS), said that China's actions have significant implications for US national security.
One US Air Force official described China's measures as "preemptive actions," indicating that further harm can be inflicted if desired, leaving enough room for further escalation. Media outlets worry that China may escalate its current export controls to include tariff increases, quota restrictions, or even a complete ban on exports.
Rare earths refer to 17 elements including neodymium, yttrium, scandium, and dysprosium. These elements are difficult to purify and process into usable forms. They are not particularly scarce in the Earth's crust, but the extraction and refining processes are challenging, and the mining and refining processes cause significant environmental costs.
Nearly every US defense technology relies on rare earth materials. Rare earth elements can be made into super-strong permanent magnets, used in fighter jets, warships, missiles, tanks, and laser weapon systems. Yttrium is essential for high-temperature jet engine coatings, and the thermal barrier coating formed by it prevents the turbine blades of aircraft engines from melting during flight.
According to data from the US Department of Defense, each F-35 fighter contains approximately 900 pounds (about 408 kilograms) of rare earth materials. Some models of nuclear submarines require more than 9,200 pounds (about 4,173 kilograms) of rare earth materials.
As of 2023, China produces 99% of the world's heavy rare earth metals, with a small amount coming from a refinery in Vietnam. However, due to tax disputes, this refinery in Vietnam has also closed down. China produces about 90% of the world's refined rare earths, while Japan and Germany produce a small amount of rare earth magnets, but their raw materials all rely on China. Companies like Lockheed Martin, Tesla, and Apple in the US also use Chinese rare earths in their supply chains.
Besides the large volume of rare earth supplies, China also dominates global rare earth processing technology. MP Materials, which owns the only rare earth mine in the US, needs to ship two-thirds of its mined rare earths to China for processing.
Although looking at the entire US defense industry, aerospace and weapons companies hold small amounts of rare earth stocks, but defense industry analysts say these inventories can only meet months of demand rather than years.
An official stated that the Pentagon also holds some rare earth stocks, but these reserves are insufficient to indefinitely meet the needs of defense companies.
Aaron Jerome, a trader at UK-based metal trading company Lipman Walton, said, "China mines and refines most of the world's rare earths and dominates the downstream supply chain." This dominant position gives China certain话语权 in weapon costs and exerts significant influence over the US defense industrial base.
Jerome mentioned what he called the "F-35 magnet dilemma." As early as 2022, after Lockheed Martin, the manufacturer of the F-35, admitted that one of its components used a Chinese-made alloy, violating federal defense procurement regulations, the Pentagon temporarily halted deliveries of the company's F-35 fighters.
At that time, the Pentagon stated that the magnet used in the integrated power assembly, which contained the alloy, did not pose safety issues. However, just a month later, the Pentagon allowed continued delivery of F-35 fighters during the search for alternative magnet sources.
Jerome pointed out that regardless of where the current magnets come from, some of their key components are subject to China's control over the supply chain.
Industry experts predict that as China further tightens its export controls, US defense companies may soon face soaring costs.
As recently as the 1980s, the US was leading in rare earth production through the Mountain Pass Mine in California. But by 2002, the Mountain Pass Mine had closed, and China took market dominance.
Experts in the industry said that although the Mountain Pass Mine, now owned by MP Materials, has resumed operations, its output falls far short of China's.
Mountain Pass Rare Earth Mine in California, USA - MP Materials
Two years ago, the Aerospace Industries Association representing defense contractors once again urged the US to strengthen its mineral supply chain to ensure a secure supply channel for the industry.
At that time, Eric Fanning, president of the association, emphasized, "The US global leadership in aerospace and defense depends on secure and resilient supply chains—especially critical minerals needed for advanced aviation technologies."
The New York Times noted that China has previously demonstrated its strength in the rare earth supply chain.
After the East China Sea collision incident between China and Japan in 2010, China imposed a seven-week ban on rare earth exports to Japan. Although some Japanese companies held sufficient rare earth inventories to last more than a year, they were still affected by China's restrictions.
The US quickly realized the strategic threat posed by China's control over key mineral supply chains. In his first term in 2017, Trump signed an executive order to promote domestic production, and the Biden administration subsequently increased investment in rare earth mining and refining facilities.
Dan Blumenthal, a scholar at the American Enterprise Institute, revealed that since the Sino-Japanese rare earth dispute in 2010, the Pentagon has continuously increased strategic reserves, "significantly increasing compared to 15 years ago," but he warned that such reserves are difficult to sustain, urging defense companies to remain vigilant.
According to a report by the Financial Times on April 12, the Trump administration is drafting an executive order to stockpile metals found on the Pacific seabed to counter China's dominance in battery minerals and rare earth supply chains.
Most of the world's seafloor contains polymetallic nodules, which are potato-sized nodules formed under high pressure on the seabed over millions of years, rich in metals such as nickel, cobalt, copper, and manganese. These metals are essential raw materials for making electric vehicle batteries, military equipment, and high-tech products.
Letticia Carvalho, secretary-general of the International Seabed Authority (ISA), which is authorized by the UN to decide deep-sea mining rules in international waters, previously warned, "Any unilateral action would constitute a blatant violation of international law, directly undermining multilateralism, peaceful use of the ocean, and the fundamental principles of global common governance."
This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.
Original source: https://www.toutiao.com/article/7493369481629008403/
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