China introduces export licenses for six heavy rare earths and magnets
China controls ~90% of global rare earth magnet production
F-35 fighter jet: ~900 pounds of rare earths per unit
Submarine: Over 9,200 pounds of rare earths per unit
U.S. producer MP Materials has limited refining capacity compared to China
Opinion
China’s export controls are seen as a targeted geopolitical move against U.S. defense supply chains. With critical military systems dependent on rare earths, the U.S. faces immediate price risks and must accelerate efforts to localize its supply chain.
Core Sell Point
Tighter rare earth controls could weigh on production and margins across defense, aerospace, and high-tech sectors in the mid to long term.
China’s tightening of rare earth mineral exports is raising concerns across the U.S. defense industry. On April 14, the New York Times described the move as “a warning shot to U.S. national security,” underscoring the rising strategic value of rare earths.
Beijing has imposed special export licensing requirements on six heavy rare earths and magnets. Given that China produces about 90% of the world’s rare earth magnets, these restrictions could drive up U.S. military procurement costs. For reference, an F-35 fighter jet requires roughly 900 pounds of rare earths, and a single submarine uses over 9,200 pounds. These materials are critical to weapons systems, radar, missile guidance, and advanced engine coatings.
While the U.S. has restarted domestic production at Mountain Pass in California, its refining capabilities remain far behind China’s. Analysts warn that short-term stockpiles will be insufficient to meet defense demand, and cite the 2010 Japan incident as precedent for China’s willingness to use rare earths as a diplomatic lever.
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