Securing the sourcing of critical minerals is essential for the defense industrial base, as they are used in the production of various Defense Department systems. Adam Burstein, the technical director for strategic and critical materials in the Office of the Assistant Secretary of Defense for Industrial Base Policy, emphasized the importance of building capability and resilience in supply chains for critical minerals. Recent disruptions due to adversarial actions have highlighted the urgency of addressing challenges such as insufficient labor and training in the U.S. to meet defense production demand, as well as inadequate sourcing for key materials and production.
One example of disruption vulnerabilities is China’s attempts to impose export bans on key materials like gallium, germanium, and antimony, demonstrating the need to secure supply chains against such tactics. Industrial-based policies focus on increasing domestic mining and processing to align with broader DOD objectives of securing critical supply chains. Since 2020, DOD has awarded over $439 million to establish domestic rare earth element supply chains. DOD needs nearly all 17 rare earth elements in some capacity and has embarked on a five-year rare earth investment strategy to build domestic capacity.
Partnering with allies is crucial for success, and Congress recently added the United Kingdom and Australia as domestic sources, in addition to Canada, for purposes of the Defense Production Act. By working with key allies, the U.S. can leverage each other’s strengths to reinforce domestic and allied defense industrial bases. The U.S. has 19 security supply cooperation arrangements with partner nations, allowing for priority delivery for DOD contracts and subcontracts. These agreements demonstrate DOD’s commitment to strengthening and expanding alliances to increase capabilities and strengthen defense industrial bases.
Stockpiling critical minerals is another strategy employed by DOD to reduce the risk of unanticipated demand spikes or supply chain disruptions. Stockpiling acts as shock absorbers, providing a buffer against disruptions in the supply chain. By securing sourcing of critical minerals, addressing challenges, partnering with allies, and stockpiling materials, DOD aims to strengthen the defense industrial base and ensure the production of essential Defense Department systems. It is crucial to build capability and resilience in supply chains for critical minerals to maintain national security and defense readiness.
