US Accelerates Efforts to Cut China Dependency for Critical Military Minerals
US companies ramp up domestic critical mineral production amid Iran conflict and Trump order.
Why it matters: Heightened geopolitical tensions and renewed Iran fighting increase demand for minerals essential in weapons systems. Legal counsel must navigate evolving regulatory and compliance landscapes tied to these supply chains and export controls.
- Phoenix Tailings secured a $500M Pentagon loan to boost rare earth output to 120 tons by 2028.
- Trump's July 2026 executive order requires US defense contractors to source minerals domestically or from allies by January 2027.
- US Army selected Titan Mining and REalloys to develop critical mineral processing facilities, including for graphite.
- Department of War invested $52M across ReElement Technologies and United States Antimony Corporation to expand refining capacities.
The renewed conflict with Iran has sharply increased the urgency for the United States to secure a reliable supply of critical minerals necessary for advanced military systems. Historically, the US has depended heavily on China for these resources, a reliance viewed as a strategic vulnerability amid escalating geopolitical tensions.
To address this, the US government and private sector have ramped up production and processing capacity for critical minerals domestically. Massachusetts-based Phoenix Tailings received a $500 million loan from the Pentagon to scale rare earth element output dramatically, targeting growth from 440 pounds per year to 120 tons by 2028 (AP News). Anthony Balladon, Phoenix Tailings’ Chief Commercial Officer, acknowledges the challenge of meeting defense demand within a tight timeframe.
On the regulatory front, President Donald Trump signed an executive order on July 20, 2026, mandating that US defense contractors source critical minerals only from domestic or allied nations. The compliance deadline is January 2027 (SCMP). This order aims to decouple key military supply chains from Chinese influence.
The US Army further supports this domestic push by selecting Titan Mining and REalloys to build processing facilities that include graphite, a critical mineral. REalloys also signed a memorandum of understanding with U.S. Critical Materials to build a domestic rare earth supply chain, securing 10% offtake from Montana’s Sheep Creek deposit (Investing.com) (Investing.com). REalloys CEO Lipi Sternheim emphasizes the goal of zero Chinese involvement in supply chains.
The Department of War has committed $25 million to ReElement Technologies for expanding refining capacity in Indiana and another $27 million to United States Antimony Corporation to enhance extraction and processing of antimony—another critical mineral (Department of War) (Nasdaq). These investments highlight the government's emphasis on scaling domestic capacity urgently.
The intensifying conflict with Iran has depleted US military stockpiles, especially for missile interceptors, intensifying pressure to secure critical mineral supply chains. Given that the US currently imports 85% of antimony and 100% of gallium, vital for military hardware, the strategic need for domestic alternatives is acute (S&P Global).
Legal teams supporting defense contractors and related industries must prepare for increased regulatory scrutiny, compliance verification, and potential export control complexities. The evolving landscape demands close attention to supply chain provenance and national security mandates.
By the numbers:
- $500 million — Pentagon loan to Phoenix Tailings for rare earth scale-up
- 120 tons — Target annual rare earth output by Phoenix Tailings in 2028
- January 2027 — Compliance deadline for defense contractors under Trump’s executive order
- 85% and 100% — US import dependency for antimony and gallium respectively
Yes, but: Specific timelines for completion of new processing facilities by Titan Mining and REalloys remain undisclosed, adding uncertainty to availability of domestically processed minerals in the near term.
What's next: Defense contractors must meet the January 2027 compliance deadline for sourcing critical minerals domestically or from allies as mandated by the 2026 executive order.