U.S. Faces Rare-Earth Magnet Supply Risk

China’s apparent decision to bar U.S. defense firms from acquiring rare-earth magnets highlights a strategic choke point in critical military supply chains.

High-performance neodymium-iron-boron (NdFeB) permanent magnets and associated rare-earth elements such as neodymium, dysprosium and terbium are essential for electric motors, actuators, sensors and guidance systems because of their high energy density and thermal stability. Concentration of mining, refining and magnet manufacturing in one country creates a single point of failure that adversaries can exploit.

Mitigation requires a multi-pronged response: diversify suppliers across allied partners; invest in domestic mining, refining and downstream magnet manufacturing; expand recycling and urban mining programs to recover rare-earths from end-of-life products; and accelerate materials research into reduced-rare-earth or rare-earth-free magnet technologies and system designs that lower material intensity.

Policy tools include targeted subsidies, streamlined permitting for critical minerals projects, public–private partnerships, strategic stockpiles and coordinated export controls. Rapid industry and government action is needed to reduce vulnerability and ensure resilient supply for defense applications.