China’s export restrictions on critical minerals are delaying U.S. defense production and inflating costs for suppliers of everything from drone parts to jet fighter components, according to The Wall Street Journal. After tightening rare earths controls earlier this year, Beijing has resumed some shipments under trade concessions but continues to withhold minerals crucial for military use. U.S. companies report delays of up to two months and price hikes of up to 60 times normal for key elements. The Pentagon relies on Chinese supply chains for more than 80,000 weapon system components. It is now investing in alternative sources, including a $400 million stake in MP Materials. Small manufacturers face shipment denials and scrutiny from Chinese regulators demanding end-use details. Industry leaders warn that without improved mineral flow, production cuts are likely in late 2025.
