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China's Rare Earth Export Controls Threaten US Defense

August 7, 2026

2 min read

Key Takeaways

China controls 90% of rare earth magnet production.
US defense contractors face supply chain disruptions.
China's export controls impact F-35 and submarine production.
US seeks domestic refining and global alternatives.

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Strategic Implications

China's export controls may indicate a significant shift in the global balance of power, as the US defense supply chain is heavily reliant on Chinese materials. This could suggest a growing dependence on alternative supply chains and domestic refining capabilities, which may have long-term implications for the US defense industry.

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What Happened

Beijing's Grip On Critical Materials Sparks Supply Chain Crisis

The US defense industrial base is facing a critical supply chain crisis due to China’s rare earth export controls, which have severely impacted the production of F-35 fighter jets and Virginia-class submarines. China’s dominance in rare earth refining and magnet production has forced American defense contractors to seek alternative supply chains, with the US government subsidizing domestic refining capabilities. According to Streamline, the situation has sparked a global scramble for secure and non-Chinese defense supply chains.

Source | Originally Published: August 3, 2026

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