United States faces critical mineral supply chain challenges

The United States defense industrial base faces significant national security challenges due to its heavy reliance on imported critical minerals. Elements such as germanium and scandium are essential for manufacturing advanced defense technologies, including warships, stealth bombers, fighter jets, missiles, and radar systems.

China currently dominates the sector, accounting for 90 percent of global refining and processing capacity and serving as the top refiner for 19 of the 20 strategic minerals most relevant to defense production. To mitigate this dependency, Washington is working to curtail imports from China and build domestic stockpiles through initiatives like Project Vault, the U.S. Strategic Critical Minerals Reserve.

While the U.S. has pursued nearly 20 bilateral framework deals and established multilateral forums like Pax Silica to create friendly supply chains, domestic production remains a hurdle. For instance, a major defense contractor recently planned to source scandium and germanium from American firms, yet the prospective supplier is not expected to have an operational mine until at least 2028. The U.S. has not mined scandium domestically since the 1960s.