How US defence firms dodged a rare-earth shortage

America's ability to make precision-guided missiles was threatened during Trump's tariff war. But experienced players have rescued the supply chain - for now, writes Farah Stockman from Boston

- Farah Stockman

Tomahawk missiles are coveted by militaries around the world because they can hit a target 1,000 miles away. That accuracy is possible because their fins use powerful magnets made of samarium a rare-earth metal that can tolerate high heat.

When China put restrictions on some rare-earth exports this year, it cut off the supply of samarium to American defence contractors that sell to Raytheon, the maker of Tomahawk missiles. Samarium is processed almost exclusively in China, where more than 85% of the world’s rare-earth magnets are made.

A carefully orchestrated deal involving two European companies gave US defence contractors access to a new source of samarium, allowing production to continue for now. But that supply made from material that had been sitting in a factory in France since the 1970s is limited. Now the Trump administration is racing to develop a new source before the European stockpile runs out.

China began requiring export licences for samarium and six other rare-earth metals in April after President Donald Trump rolled out tariffs against China and several other nations. A spokesman at the Chinese Embassy in Washington said in an email that the export controls had been instituted to “defend world peace.” Foreign companies that use samarium for military purposes are no longer allowed to buy it.

“No defence contractor will be able to use the same path to buy samarium metal that we've used in the past,” said an executive for one of Raytheon’s suppliers, who asked for anonymity because of the sensitivity of the subject. “You're on the naughty list. You're not getting that material.”

Most rare-earth magnets are made of neodymium, which is used in everyday applications such as cell phones, auto parts and electronics. But the defence industry requires samarium-cobalt magnets, which can withstand extreme heat.

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