Pentagon Launches $1bn Critical Minerals Stockpile

The Pentagon has initiated an accelerated procurement program to build up to $1 billion in stockpiled critical minerals, aiming to reduce U.S. dependence on Chinese-controlled supply chains.

Public Defense Logistics Agency filings show the drive targets rare-earth elements and related materials that are essential to modern weapons systems and electronics.

Beijing recently tightened export controls on rare-earths and magnets, including products with even trace Chinese content, prompting concern about near-term disruptions to defense and semiconductor production.

Rare-earths such as neodymium, praseodymium, samarium and dysprosium are key inputs for high-performance permanent magnets. These materials appear across fighter jets, satellites, guided munitions and submarines; for example, an F-35 uses roughly 920 pounds of rare-earth-containing components per airframe.

The move addresses a long-standing gap: the Cold War-era National Defense Stockpile, inflation-adjusted to about $42 billion at its peak, now holds under $1 billion and lacks usable rare-earth inventories for surge production.

Washington has already committed funds under the Defense Production Act-about $540 million-to support domestic and allied supply chains, and the Defense Department invested roughly $400 million in MP Materials to finance a new processing facility and secure neodymium-praseodymium oxide through a guaranteed price arrangement.

With roughly 70% of U.S. rare-earth imports and concentrated Chinese control of mining and processing, the stockpile and upstream investments aim to strengthen resilience and reduce strategic leverage.