US Faces Pressure to Build Weapons Without Chinese Magnets
The Pentagon loaned Phoenix Tailings $500 million to expand rare-earth processing in New Hampshire. The move comes as China's export restrictions on critical minerals squeeze U.S. weapons production.
- $150 million weapon systems can fail over $20,000–$30,000 in missing minerals, per Phoenix Tailings.
- 50 to 100 tons of samarium needed annually by U.S. defense; domestic capacity is very limited.
- Phoenix Tailings currently produces about 200 kilograms of samarium per year.
- Belgium's Solvay restarted rare-earth separation in France after China tightened exports in April 2025.
Why it matters: Rare-earth magnets are embedded in Tomahawk cruise missiles, THAAD interceptors, F-35 fighters, and drones. Middle East combat operations are drawing down munitions stocks faster than they can be replaced.
- White House rules now ban defense contractors from sourcing critical-mineral components from China.
- Most new U.S. mines are years from production; processing mine waste is the near-term alternative.
How 6 sources split on this story
Center coverage, 3 sources: The center treats this as a straightforward industrial and national-security story, detailing the gap between current capacity and defense demand without assigning political blame.
Associated Press4hUS faces new pressure to build weapons without China's rare earth magnetsCNCTV News3hU.S. faces new pressure to build weapons without China’s rare earth magnets
Fortune1hAmerica's $500 million bet on rare earths depends on a tiny New Hampshire refinery scaling from 200 kg to 120 tonnes in 2 years | FortuneLeft coverage, 1 sources: The left frames this as a supply-chain vulnerability exposed by the trade war, with the timeline for domestic fixes raising questions about whether tariff pressure on China created the crisis.
Right coverage, 2 sources: The right frames domestic rare-earth investment as a necessary and overdue assertion of U.S. strategic independence from China's near-monopoly on critical minerals.
What’s next: Phoenix Tailings plans to scale samarium output to 5 tons within three months.
- Its target of 120-ton annual capacity is not expected until 2027 or 2028.
- The new processing facility requires 14 to 18 months to construct.
- Can U.S. and allied processing capacity realistically close the gap before defense stockpiles run critically low?
- Will higher costs from non-Chinese suppliers eventually affect weapons procurement budgets?
- How quickly can other critical minerals — such as tungsten — be sourced domestically?