China's Rare Earth Metals Export Restrictions Disrupt US Defense Contractors, Lockheed Martin and Tesla
Published on 4.15.25
The export restrictions imposed by China on heavy rare earth metals have significantly impacted US companies such as Lockheed Martin, Tesla, and Apple, highlighting the critical role these materials play in essential components.
US government stockpiles are insufficient to meet perpetual demand from defense contractors, raising concerns about potential supply shortages. James Litinsky, executive chairman of MP Materials, expressed concern over the impact on future supply chains, particularly for drones and robotics in warfare.
The closure of the US-based Mountain Pass mine in California has further exacerbated these concerns. Japan's efforts to boost interoperability with partner forces and strengthen defense supply chains through practical coordination with European industries would benefit its Self-Defense Forces.
This situation underscores the need for a swift resolution on rare earths exports to prevent disruptions that could harm China's reputation as a reliable supplier.