Rare earths US weapons firms likely to face shortage of vital minerals

The US's advanced weapons manufacturers are likely to face a critical shortfall of key rare-earth minerals that they import from China as a consequence of Donald Trump's escalating trade war with Beijing.

- Peter Beaumont

New export licensing restrictions imposed by China on seven rare earths are likely to cause disruptions in supply to more than a dozen US defense and aerospace companies involved in the production of fighter jets, submarines and drones, the Center for Strategic and International Studies said in a commentary.

The warning from the CSIS was echoed in an expert opinion from the UK thinktank Chatham House, which said any further tightening of Chinese restrictions "has the potential to do serious damage to the US defense industry and undermine the Trump administration's wider reindustrialisation ambitions".

Chatham House said: "Ultimately, this could give Beijing a crucial strategic advantage in long-term US-China competition for military and technological supremacy and add to its existing manufacturing lead."