China’s Xi Jinping appeared supremely confident at a recent military parade in Beijing with Russia’s Vladimir Putin and North Korea’s Kim Jong Un. Xi’s assurance likely isn’t just a reflection of China’s growing military might. It’s also that China now holds the U.S. defense industrial base in the palm of its hand.
Xi is well aware that China’s dominance of global mineral supply chains has ensnared both the U.S. economy and America’s military. According to The Wall Street Journal, more than 80,000 parts used in America’s weapons systems are manufactured with critical minerals subject to Chinese control.
Whether it’s fighter jets, drones, munitions, or night vision goggles, China can bring U.S. military production to a standstill simply by denying us the minerals we need.
China’s mineral dominance has been decades in the making. The United States was once a global mining superpower. But extraordinary policy missteps have withered away our industrial base since the end of the Cold War — and put China in the driver’s seat.
A single U.S. weapon can now require hundreds of suppliers in dozens of countries. Although we stockpile some minerals for weapons production, a Chinese embargo would still cripple our military in a matter of months. And as a consequence of the ongoing U.S.-China trade fight, Beijing has already slashed the flow of critical minerals to western defense contractors, increasing our production costs — or halting production altogether.
This is a crisis. To its credit, the Trump administration recognizes the urgency of the challenge. But declawing China’s minerals weapon won’t be quick or easy. Beijing has no intention of letting its control wane without a fight — and is currently doubling down on its mineral dominance.
Recent U.S. trade deals — from Ukraine to Indonesia — have begun to focus on supplies of critical minerals. While that’s potentially helpful, the real solution is here at home.
America simply can’t continue to depend on overseas suppliers. It may seem shrewd to pursue high ore grades for metals from the Democratic Republic of the Congo, or nickel resources from Indonesia, but that does little to ease the threat of supply chain disruptions.
The U.S. has vast mineral resources. But for decades we’ve done little to tap this tremendous capacity. A new mineral policy is beginning to come into focus but we must think big and move fast.
Increased mapping of domestic resources with cutting-edge technology is an important step forward. Ongoing efforts to streamline mine permitting and address obstructive litigation delays are also necessary and encouraging.
We must also have aggressive financial support to rebalance the playing field for U.S. producers against overseas competitors. In July, the Pentagon invested $400 million for a stake in MP Materials — the operator of the largest rare-earths mine in North America — and inked a ten-year offtake agreement to provide critically needed certainty for other investors. This public-private partnership should serve as the model to address countless other vulnerabilities in our mineral supply chains.
For decades, America possessed a robust industrial base that served as a warning to adversaries. But our industrial base is no longer a deterrent. And our critical supply chains are so vulnerable, and our productive capacity so weak, that we risk conflict.
There’s no time to waste in rebuilding our industrial strength from the mine up. We must do that to break Beijing’s iron grip on the world’s mineral supply chains. American lives and global security depend on it.
