Pentagon Says US Needs More Mines to Boost Rare Earth Supply Chain

A Pentagon official said that the US and allies should mine and process more rare earths to promote the development of the rare earth supply chain to ensure a sufficient global supply of strategic minerals for military and commercial purposes.

These remarks emphasized the increasing interest of the U.S. Department of Defense in public-private mining cooperation to counter China’s status as the world’s largest producer of rare earths, which are 17 types of minerals used in the manufacture of weapons and equipment and special magnets for electric vehicles (EVs).

"We know that without establishing a close partnership with industry, we cannot address the supply chain risks we all face," said Danielle Miller of the Pentagon Office of Industrial Policy at the Adamas Intelligence North American Critical Minerals Day conference.

"Strategy and the new primary production of key minerals can be summed up in one sentence, that is, mining is a necessary condition to improve the resilience of the global supply chain." Miller cited recent MP Materials Corp, Urban Mining Co, Australia's Lynas Rare Earths Ltd and Blue Line Corp’s joint venture investment in the U.S. rare earth project under development is a testament to the Pentagon’s desire to become a "patient and strategic investor" in private companies.

Miller said: "Strategy and domestic production of key materials are the ultimate hedge against the risk of deliberate non-market intervention in the extended overseas supply chain," which may refer to China's hint that it may cut rare earth exports to the United States.

"We have no illusions about the competitive pressures facing the U.S. mining industry." Miller also stated that the Pentagon hopes to help allied mining companies "build a common understanding of sustainability." The US mining environmental standards are among the most stringent in the world.

"Miller said: "We hope to cooperate with (miners) to speed up procurement from the lowest cost and technically acceptable in order to promote the development of the rare earth supply chain.

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