Commodities
Home›Commodities›Mining›Pentagon demand for rare earth magnets could nearly do…
Pentagon demand for rare earth magnets could nearly double by 2030
The US Department of Defense expects needs to rise to 10,000 tonnes annually by 2030, while non-Chinese magnet production totals 20,000 to 25,000 tonnes today.
Washingtons push to build a defense supply chain independent of China is running into a rare earth bottleneck, with Pentagon needs for specialized magnets expected to rise substantially by 2030, according to Mining.com.
A Sprott Asset Management report cited by Mining.com estimates US Department of Defense needs will climb about three times to 10,000 tonnes annually by 2030. That would require magnets sufficient to absorb nearly half of todays entire non-Chinese production, compared with 20,000 to 25,000 tonnes of rare earth magnet production outside China today, against a global market of roughly 250,000 tonnes.
Mining.com reports that the strategic focus is on reliability and source of supply rather than cost, because China can influence prices through quotas and export controls. The outlet also notes that the elements are used across major defense systems, including fighter jets, submarines, drones, missiles, radar, and precision-guided weapons, which makes secure supply more critical as platforms become more electrified and sensor-driven.
The vulnerability of the supply chain has already surfaced, Mining.com adds. It points to 2022 disruptions to new F-35 deliveries after a Chinese-sourced alloy was found in an engine magnet, and it says China tightened pressure in 2025 with export controls on several heavy rare earths and related magnets, while controlling 91% of global refining and 94% of finished permanent magnet production.