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US executive order tightens rare earth sourcing for defense suppliers
Signed July 20, the order also tightens waiver conditions for defense-critical imports, and adds new covered materials like gallium and germanium.
Alyssa Chen of SCMP Economy reports that a new US executive order requires major arms manufacturers to trace their multi-tier supply chains and actively phase out Chinese rare earths used in defense applications.
The directive, signed on July 20 by President Donald Trump, tightens conditions under which the US Department of Defence can grant waivers for defense-critical imports from China, Russia, Iran, and North Korea.
According to SCMP Economy, US analysts expect the near-term market adjustments for contractors to be manageable, though requalifying suppliers and securing non-Chinese alternatives could slightly stretch delivery timetables for future military hardware.
The order also tightens defense procurement rules that bar sourcing certain “covered materials” from adversary states, and it expands the list to include rare earth magnets plus newly added inputs such as gallium and germanium, while exemptions remain tied to waiver conditions.