China's Rare Earth Weapon: How Export Curbs Threaten Global Defense Manufacturing

"Basically everyone is dependent on China for a standing army because of the wide use of these minerals in defence, and we are days if not weeks away from a crisis," said Neha Mukherjee, Research Manager at Benchmark Mineral Intelligence (a London based data and supply chain intelligence platform for rare earth elements), in an exclusive interaction with, ANI.

Mukherjee explained that although the technology for extracting heavy rare earths is similar to that for light rare earths, the ripple effect is much broader.

"So even though technically it is not a ban or not a restriction on all the rare earths, it transcends across everything and it spills across on everything," she said, emphasizing that the end-use applications of these materials are both vast and critical.

A large proportion of heavy rare earths are vital to defense manufacturing. "For example, a Tomahawk missile, or an F-35 fighter jet, just one F-35 uses more than 400 kilograms of rare earths. A submarine uses 4.6 tons of rare earths," Mukherjee noted.

She added that the new export restrictions clearly indicate China's strategic intent. "The export restrictions make it clear that China does not want to supply to any defense manufacturing organization," she said.

With 95 per cent of the world's rare earths sourced from China, the move places enormous pressure on defense manufacturers worldwide, disrupting supply chains for fighter jets, missiles, and other military technologies. Mukherjee warned that this dependence has made countries vulnerable to severe supply shocks amid rising geopolitical tensions.

The development comes ahead of U.S. President Donald Trump's upcoming diplomatic tour to Malaysia, South Korea, and Japan, which includes a crucial meeting with Chinese President Xi Jinping in South Korea. "It is very strategically timed, just weeks before the two presidents are supposed to meet, because there's most critical minerals on the leverage table," Mukherjee observed.

She explained that after the tariff war escalated in April, China imposed export controls on seven medium and heavy rare earths, small in quantity but essential in applications spanning electronics, electric vehicles, and defense. "They're used everywhere in our daily lives, in speakers, phones, laptops, robots, but also in EVs and have a strategic application in defense," she said.

Mukherjee clarified that the move stops short of a full ban. "It is still not a de facto ban. It is just that anyone who is trying to export needs to apply for a license." However, the process has caused severe delays. "On the ground, things have been very different," she added, citing bureaucratic hurdles that slowed exports and disrupted production.

Now, just weeks before the Trump-Xi meeting, Beijing has intensified its stance. "China has added more heavy rare earths to the list," Mukherjee revealed. "This time, there will also be a license requirement for anyone trying to use any material that is re-imported from China."

She explained that countries importing raw materials from China, processing them, and re-exporting finished products will now also face licensing hurdles. "Even intellectual property (IP) coming from China is going to get affected," she added.

Mukherjee concluded that the latest export restrictions highlight China's continued dominance over critical minerals, a dominance that gives it leverage over global trade, technology, and defense readiness.

- ANI