China's controls on rare earth exports have US military racing to find essential missile magnets

(Representative Image)

China's imposition of new export controls on rare earth magnets has revealed a huge weakness in the supply chain of the US military, which could cause efforts to stock up on advanced weaponry spent in battles in Ukraine, Gaza and Taiwan to grind to a halt, according to the New York Times.

Beijing's action, which involves an export ban on samarium—a rare earth element used nearly exclusively in military capacity—has already caused supplies for missiles, fighter aircraft and other defence systems of strategic importance to be strained. The move coincides with US and Chinese officials stuck in trade negotiations in London as rare earth access is a priority for the US.

Samarium magnets are needed for use in items such as missile nose cones' electric motors and F-35 fighter jets, where high heat resistance is a must. China is the global only producer of samarium. Without samarium, America and its European allies encounter serious challenges in resupplying advanced weaponry following several months of intense shipments to Ukraine and Israel.

On April 4, China halted exports of seven rare earth metals and magnets made from them, citing national security concerns. While some licenses have been issued for civilian-use magnets, no samarium exports appear to have been approved. Chinese officials now require export licenses based on the end-user, effectively blocking supplies to military contractors.

Stanley Trout, a metallurgist who works with samarium magnets, explained the metal's application is virtually all military. "It is used virtually exclusively for military purposes," he said.

Samarium magnets play an essential part in Lockheed Martin, which employs approximately 50 pounds of the substance per F-35 fighter aircraft. The company made a measured statement, stating that it is "continuously assessing" the rare earth supply chain but pointed elaborate questions to the US government.

US attempts to restore domestic supply fail

Since decades, the US has failed to acquire a substitute supply of samarium. The sole Western mill refining the metal shut down in France in 1994, being unable to match Chinese output. Ongoing attempts to restore domestic capacity have come to nothing.

The Biden administration contracted a recent round of revivals for US processing, though it has progressed slowly. MP Materials got a $35 million award to initiate samarium production at its mine in Mountain Pass, California, but never set up the equipment required because of commercial issues. At the same time, a greater $351 million grant to Australia's Lynas Rare Earths for a Texas factory has yet to lead to building.

MP CEO James Litinsky indicated that the company will be ready to turn on its processing gear if fiscal terms improve, but also stated, "We felt very burnt by the whole thing."

Military demand exceeds supply under geopolitical tensions

The timing of the Chinese restrictions is particularly damaging. US and European militaries are urgently trying to rebuild stocks of precision weapons after extensive transfers to Ukraine and Israel. The Trump administration is also accelerating arms sales to Taiwan, heightening tensions with Beijing, which has retaliated with sanctions on American military contractors.

US legislation demands that magnets intended for military use must be smelted or cast locally or in allied countries, while China has been supplying the raw materials for many years. This reliance makes the US armed forces vulnerable to supply chain disruptions over which they have no control.

Measures under previous regimes to tackle the problem were met with varying degrees of success. The Obama-era strategy aimed at World Trade Organization norms, but things went awry during Trump's leadership, minimizing US influence on trade circles. It is an uphill task for the Biden administration with China using its commanding rare earth role.

As negotiations over trade are ongoing in London, few anticipate Beijing to completely drop its new licensing regime. "I don't think that's going away," declared Michael Hart, president of the American Chamber of Commerce in China.

In the meantime, a crucial element of America's most sophisticated weapons is at the mercy of Chinese export policy.