Egypt Daily News – China has imposed strict restrictions on the export of heat-resistant magnets made from rare earth metals, exposing a significant vulnerability in the U.S. military supply chain, according to an analytical report by The New York Times.
The report argues that without these magnets, the United States and its European allies will face difficulties replenishing stocks of military equipment that have been recently depleted.
“For over a decade, America has failed to develop an alternative to Chinese supplies of a specific type of rare earth metals that are essential for making magnets used in missiles, fighter jets, smart bombs, and a wide range of other military gear,” the report states.
A Critical but Little-Known Metal
Rare earth metals have become a central issue in the ongoing trade talks between the U.S. and China in London.
China produces the entire global supply of samarium, a rare and little-known metal used almost exclusively in military applications. Samarium magnets can withstand temperatures high enough to melt lead without losing their magnetic strength. This makes them essential for high-speed electric motors operating in tight spaces, such as missile warheads.
On April 4, China halted the export of seven types of rare earth metals, as well as the magnets made from them. China controls most of the global supply of these materials. Its Ministry of Commerce announced that due to their civilian and military applications, any additional exports would require special licenses. The ministry said the measure aims to “protect national security and fulfill international obligations such as non-proliferation.”
Some licenses have since been issued for magnets containing two of the restricted elements, dysprosium and terbium to carmakers in Europe and the U.S.
These magnets are used in brake and steering systems and can handle the heat from nearby gasoline engines. However, they cannot withstand the much higher temperatures required for military uses. So far, there is no indication that China will approve samarium exports, which have minimal civilian use.
A U.S. Priority
Trade talks between Chinese and U.S. officials began yesterday, Monday, in London and are set to continue for two days. Reestablishing the flow of rare earth elements is a top priority for the American side, though few expect China to completely reverse its new licensing regime.
Michael Hart, president of the American Chamber of Commerce in China, who coordinates U.S. private-sector efforts to secure more rare materials, told the newspaper: “I don’t think that’s going away.”
According to the report, the primary U.S. user of samarium is Lockheed Martin, a defense contractor that uses about 50 pounds of samarium magnets in every F-35 fighter jet. The company issued a brief statement in response to inquiries: “We continually assess the global rare earth supply chain to ensure access to critical materials that support our customers’ missions. Questions regarding supply chain policy are best directed to the U.S. government.”
The U.S. government has expressed deep concern over the lack of a domestic source for samarium. This concern has led to contracts for building two production facilities, but neither has been constructed due to commercial obstacles. As a result, the U.S. remains fully dependent on China.
This comes as the U.S. and its European allies are rushing to rebuild their stockpiles of advanced weapons, which have been depleted by shipments to Ukraine following the Russian invasion, and to Israel during the war in Gaza.
Taiwan at the Center of Tensions
The administration of former President Donald Trump had also aimed to supply Taiwan—considered by Beijing as part of its territory—with more weapons. In parallel, China has imposed sanctions on some U.S. defense companies due to their arms sales to Taiwan, and has added restrictions on rare earth exports for military use.
These sanctions now prevent Chinese companies and individuals from engaging in any financial dealings with U.S. defense contractors. While this previously had little impact on samarium production, the recent changes to the licensing system have reduced its availability.
According to the report, the new Chinese regulations stipulate that export licenses will be issued based on the end user of the material, putting military contractors directly under scrutiny. Expert Stanley Trout noted that six of the seven restricted rare earths are used in civilian applications, while samarium is used “almost exclusively for military purposes.”
Even though U.S. law requires military-grade magnets to be melted or cast within the United States or in allied nations, it allows the import of raw materials from anywhere. As such, samarium has long been imported from China.
Domestic Mining Challenges
Although rare earth metals exist in various regions around the world, they are typically found in low concentrations. Their extraction and separation require over 100 chemical steps involving very strong acids, according to the report.
The Mountain Pass mine in California has never produced samarium and does not include it in its expansion plans. The mine was restarted in 2014 for other rare earths but shut down a year later and declared bankruptcy due to Chinese competition.
MP Materials later acquired the mine and resumed operations in 2018—but initially sent raw ore to China for processing. In early 2022, it received $35 million from the U.S. Department of Defense to begin producing samarium and several other rare earths. The company also invested $100 million of its own funds to acquire processing equipment, according to CEO James Litinsky.
Subsequently, Australian company Lynas Rare Earths was awarded $351 million to build a production facility in Texas. However, the project was not implemented after the company obtained an extension for its exploration license in Malaysia.
Litinsky noted, “The market is too small to justify having two producers inside the U.S., which is why the company hasn’t installed the samarium equipment yet—it remains in storage.” He added, “We feel like we’ve been completely misled on this issue.”
