Pentagon plans $1bln critical minerals purchase as China tensions rise

By Al Mayadeen English
Source: News Websites
12 Oct 2025 20:15

The Pentagon is reportedly preparing to acquire up to $1 billion worth of critical minerals, including rare earth elements, as China imposes new export restrictions on key materials vital to US defense systems.

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President Donald Trump speaks in the Oval Office of the White House, Friday, Oct. 10, 2025, in Washington. (AP)

The Pentagon is reportedly planning to acquire up to $1 billion worth of critical minerals, including rare earth elements, the Financial Times reported Sunday.

The move comes in response to China's decision to implement export controls on a range of essential materials, raising alarms in Washington over supply chain vulnerabilities that could impact US military capabilities.

China announces export controls on key minerals

The Chinese Commerce Ministry recently announced that starting November 8, it will enforce restrictions on the export of goods related to medium and heavy rare earth elements, lithium batteries, artificial graphite anode materials, mining equipment, raw minerals, and ultra-high strength materials.

These materials are considered crucial for modern industrial and defense applications, including electronics, energy storage, and advanced manufacturing. Critical minerals for weapons systems are a top concern for the Pentagon. These resources are used in radar arrays, missile detection systems, advanced optics, and nearly every sophisticated weapons platform operated by the US military.

Trump escalates trade tensions

This also comes after US President Donald Trump announced on Friday that the US will impose a 100% tariff on Chinese goods on or before November 1. Trump cited China’s "aggressive position on trade" as justification for the decision, further straining already fragile ties between the two global powers.

China's Ministry of Commerce has accused Washington of hypocrisy, saying "The relevant US statement is a typical example of 'double standards'," said an unnamed ministry spokesperson, adding that recent US actions have "severely harmed China's interests and seriously undermined the atmosphere of the economic and trade talks between the two sides."