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Defense Applications

Use of REEs in fighter jets, missile systems, and naval vessels

Modern military strength relies significantly on Rare Earth Elements (REEs). These 17 specific minerals are essential components in the most advanced defense equipment. Fighter jets, guided missiles, submarines, and surface ships all need REEs to achieve peak performance.

Take the F-35 Lightning II fighter jet as an example. Each aircraft incorporates about 900 pounds (around 410 kilograms) of rare earth materials. These elements make components lighter and stronger. They enable sophisticated sensors and electronic warfare systems. Specific REEs like neodymium and praseodymium form powerful magnets used in actuators and generators. Others, such as dysprosium and yttrium, are critical for laser targeting systems and specialized alloys in engines and airframes. The U.S. military's Next Generation Air Dominance fighter, the F-47, will also depend on these vital materials.

Missile systems also heavily utilize REEs. The magnets in missile guidance fins often use neodymium. Precision targeting relies on complex electronics built with various rare earths. Nuclear submarines like the Columbia-class carry Trident II D5 ballistic missiles. These missiles possess intercontinental range, capable of hitting targets over 7,400 miles away, guided by REE-dependent systems.

Naval vessels integrate substantial amounts of rare earths. A Virginia-class nuclear attack submarine contains approximately 9,200 pounds (about 4,200 kilograms) of REE materials. An Arleigh Burke-class guided-missile destroyer uses around 2.3 tons. REEs feature in advanced sonar systems for detecting underwater threats. They are used in electric drive systems for quieter operation and in numerous electronic components throughout the ships. The U.S. Navy plans steady production, aiming for one Columbia-class and two Virginia-class submarines annually, requiring a consistent REE supply.

The U.S. military's overall demand for REEs is large and growing. Some estimates project military REE needs will climb from $15 billion in 2022 value to $46 billion by 2046. This creates a strategic challenge because China currently dominates the global supply. China controls most rare earth mining (around 70 percent) and an overwhelming share of processing (around 90 percent). The U.S. imports a large majority, possibly 70 to 80 percent, of its REEs from China. This dependence creates risks. China restricted exports of seven key REEs in April 2025, including dysprosium and yttrium needed for jet components. Recognizing this vulnerability, the U.S. Department of Defense invested $120 million to help establish domestic REE processing capacity in Texas.

Importance in communication and surveillance equipment

Rare Earth Elements play an equally critical role in military communication and surveillance systems. These systems allow forces to detect adversaries, share information securely, and coordinate actions effectively. REEs provide the unique physical properties needed for the advanced electronics at the heart of this equipment.

Modern radar systems rely on REEs to generate powerful microwave signals and process faint returning echoes for accurate detection. Electronic warfare systems use REE-based components to jam enemy radar and communications or to protect friendly signals from interference. Secure military radios and satellite communication terminals need REE materials for reliable operation in harsh conditions. The superior performance of these systems often traces back directly to rare earth elements.

Specific REEs enable specific functions. Samarium, often alloyed with cobalt, creates magnets that retain their strength at high temperatures, useful in radar and electronic warfare systems. Terbium and dysprosium improve the performance of other magnetic materials. Yttrium compounds feature in microwave filters and phosphors for specialized displays. Much of the REE content in platforms like the F-35 supports its complex sensor suites and communication gear.

REEs are fundamental to the high-performance semiconductors used throughout military electronics. These advanced chips process information from sensors, manage communication links, and control weapons systems. The increasing need for faster data processing and more capable sensors drives demand for these specialized semiconductors. This, in turn, requires a stable supply of the REEs used to manufacture them. The global semiconductor market may reach $1 trillion by 2030, partly fueled by defense requirements. The U.S. CHIPS Act allocates $50 billion to bolster domestic semiconductor production and secure related supply chains, including critical minerals like REEs.

Overall demand for REEs reflects their wide use. Global consumption neared 200,000 tons per year recently, with some forecasts predicting this could double to 500,000 tons soon. Ensuring a secure supply of REEs for communication and surveillance technology is essential for maintaining the U.S. military's information advantage. Investments by companies like Lynas Rare Earths in U.S. processing plants aim to mitigate the risks associated with dependence on China.

Advanced Technologies

Role in emerging technologies like hypersonics and directed energy weapons

Rare Earth Elements (REEs) are fundamental to developing next-generation military capabilities. Emerging technologies like hypersonic weapons and directed energy weapons (DEWs) depend heavily on these critical materials. These systems offer potentially revolutionary advantages on the future battlefield, but they require materials that can perform under extreme conditions. REEs often provide those necessary properties.

Hypersonic weapons travel at speeds greater than five times the speed of sound (Mach 5). They generate intense heat and face enormous physical stress. REEs contribute to specialized alloys and ceramics that can withstand these environments. Specific elements like dysprosium and yttrium are vital for components within hypersonic vehicles, including their sensors and guidance systems.

Directed energy weapons, such as high-power laser systems or high-power microwave devices, also rely on REEs. Rare earths form the core of the gain medium in many powerful lasers, amplifying light energy. They are used in specialized coatings and optics designed to handle intense energy beams. REEs also feature in the advanced power systems needed to generate the massive amounts of electricity these weapons consume.

Securing the REEs for these programs presents a strategic challenge. China currently dominates the supply chain, controlling about 70 percent of REE mining and 90 percent of processing globally. In a move highlighting this leverage, China restricted exports of seven key REEs on April 4, 2025. This list included dysprosium and yttrium, the elements identified as vital for hypersonic systems. Such restrictions pose a direct threat to U.S. development timelines for these crucial defense programs. Overall military demand for REEs grew by 50 percent over the past decade, underscoring the increasing reliance on these elements for cutting-edge defense systems.

Integration in AI and quantum computing hardware

Rare Earth Elements serve as essential building blocks for the physical hardware enabling progress in artificial intelligence (AI) and quantum computing. These transformative fields depend on advanced computing infrastructure, and REEs are key ingredients in many components.

AI development requires immense computational power to train large models and process vast datasets. High-performance computer servers often utilize components made with REEs. For instance, powerful neodymium-dysprosium magnets are crucial components in hard disk drives used for data storage. Other REEs may be incorporated into specialized processors or memory chips designed to accelerate AI calculations. The widespread adoption of AI, seen in sectors like finance where over 84 percent of institutions used AI in 2023 and investment topped $150 billion, fuels demand for this underlying hardware.

Quantum computing represents another frontier reliant on REEs. The unique atomic properties of certain rare earth ions allow them to act as qubits – the fundamental units of quantum information – when isolated within specific crystal host materials. REEs also play roles in the ultra-sensitive detectors and complex electronics needed to control quantum systems and read out their results. Quantum hardware companies like Rigetti Computing demonstrate ongoing progress; Rigetti launched its 84-qubit Ankaa-3 processor in December 2024, achieving high operational fidelity. The global quantum computing market anticipates strong growth, with forecasts suggesting a 20.5 percent compound annual growth rate from 2025 to 2030.

However, the hardware supply chain for these advanced fields faces constraints. Fewer than ten manufacturers worldwide specialize in producing certain critical quantum components. The dependence on REEs adds another layer of complexity and risk. China's control over roughly 70 percent of the global REE supply impacts both the cost and availability of materials needed for AI and quantum hardware. Prices for essential REE materials reportedly surged by 67 percent since 2022. Experts also warn of potential future REE shortages, possibly reaching 47,000 tons by 2030, which could impede progress. Ensuring a stable and diverse supply of REEs is therefore critical for realizing the potential of both AI and quantum computing, motivating global efforts in resource diversification and recycling.

Civil-Military Integration

Overlap between civilian and military REE applications

Rare Earth Elements (REEs) possess unique properties valuable across many fields. This group of 17 metals, including neodymium, dysprosium, gadolinium, and yttrium, forms the backbone of numerous modern technologies. Critically, many of these applications span both the civilian world and the military domain. This overlap means commercial markets and defense industries often rely on the exact same materials.

The defense sector uses REEs in highly specialized equipment. An F-35 fighter jet incorporates over 900 pounds (more than 400 kilograms) of REE materials. A Virginia-class nuclear submarine needs over 9,000 pounds (about 4,173 kilograms). These elements enable powerful magnets, heat-resistant alloys, advanced sensors, laser systems, and sophisticated electronics crucial for military superiority.

Simultaneously, civilian technologies widely employ these same rare earths. The powerful neodymium magnets essential for missile guidance systems also drive the motors in electric vehicles (EVs) and generators inside wind turbines. Smartphones contain tiny REE magnets for speakers and vibration motors, along with REE phosphors that create bright screen colors. The medical field also depends on REEs. Gadolinium serves as a key contrast agent for MRI scans, aiding doctors in diagnosis. Yttrium finds use in other medical imaging devices and cancer treatments. The U.S. healthcare system imports 93 percent of the yttrium it uses from China.

While the quantity used by the military might be smaller compared to large commercial markets – U.S. military use was less than 0.1 percent of global REE demand in 2023 – its strategic importance is enormous. Furthermore, military demand for REEs projects significant growth, potentially reaching a value of $46 billion by 2046. The crucial point remains: civilian industries and defense programs compete for the same processed rare earth materials from a limited global supply base.

Implications for supply chain security

This shared dependence creates complex supply chain security challenges. High demand from rapidly growing civilian sectors, like electric vehicles, directly affects the availability and cost of REEs for military needs. A boom in commercial demand can lead to tighter supplies and higher prices for everyone, including the Department of Defense.

China's dominance over the REE market magnifies these security concerns. China mines approximately 70 percent of the world's raw REEs. More critically, it controls between 85 and 90 percent of the global capacity for refining these ores into usable metals. The United States imports around 70 percent of its REEs and over half of all its designated critical minerals, much of this originating from or processed in China. This concentrated control gives China significant leverage over the entire supply chain.

Recent events clearly illustrate the risks. In April 2025, China began requiring special export licenses for seven key REEs often used in defense technologies. China has restricted or halted exports in the past during trade disputes. Such actions can instantly disrupt production lines for both defense contractors and civilian companies relying on these materials. They can also trigger sharp price increases; analysts suggested potential price jumps of 20 to 30 percent following the 2025 license requirement. With limited domestic stockpiles, potentially sufficient for only a few months of military needs, the U.S. faces tangible risks to readiness if imports are severely curtailed.

These vulnerabilities have prompted action. Japan learned the importance of diversification after a temporary Chinese REE export halt in 2010, leading it to build stockpiles and invest in alternative supplies. The U.S. is now also focusing on building strategic stockpiles. The Department of Defense has invested over $439 million since 2020 with the goal of establishing a resilient domestic REE supply chain by 2027. Government policies like the STRATEGIC Minerals Act seek to secure supply through trade agreements with allied nations. International initiatives like the Minerals Security Partnership, involving 14 countries plus the European Union and supporting 32 projects, aim to boost production outside of China. These strategies acknowledge that securing REEs for defense is intertwined with the health and security of the broader commercial market. The very low rate of REE recycling, currently under 5 percent, further increases pressure on finding reliable primary sources.

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Table of Contents

(Click on any section to start reading it)

1. Introduction: The Strategic Significance of Rare Earths

• What Are Rare Earth Elements (REEs)?

  • Definition and classification of REEs

  • Unique properties and applications

• Historical Context

  • Evolution of REE usage in technology and defense

  • Past supply chain challenges and lessons learned

• Current Relevance

  • Why REEs are critical to modern national security

  • Overview of global REE demand and supply​

2. Military and Technological Dependence on Rare Earths

• Defense Applications

  • Use of REEs in fighter jets, missile systems, and naval vessels

  • Importance in communication and surveillance equipment

• Advanced Technologies

  • Role in emerging technologies like hypersonics and directed energy weapons

  • Integration in AI and quantum computing hardware

• Civil-Military Integration

  • Overlap between civilian and military REE applications

  • Implications for supply chain security​

3. Global Supply Chains and Geopolitical Dynamics

• China's Dominance

  • Extent of China's control over REE mining and processing

  • Strategies employed by China to maintain dominance

• Supply Chain Vulnerabilities

  • Risks associated with concentrated supply sources

  • Impact of export restrictions and trade disputes

• International Responses

  • Efforts by the U.S. and allies to diversify supply

  • Collaborations and partnerships to secure REE access

4. U.S. Strategies for Securing Rare Earth Supplies

• Domestic Initiatives

  • Investment in domestic mining and processing facilities

  • Legislative measures to promote REE independence

• Stockpiling and Reserves

  • Development of strategic reserves for critical minerals

  • Policies under the Strategic and Critical Materials Stock Piling Act

• Research and Development

  • Funding for alternative materials and recycling technologies

  • Support for innovation in REE extraction and processing

5. Economic and Environmental Considerations

• Market Dynamics

  • Price volatility and its effects on industry

  • Economic implications of supply disruptions

• Environmental Impact

  • Challenges in environmentally sustainable REE extraction

  • Regulatory frameworks governing mining activities

• Balancing Security and Sustainability

  • Strategies to reconcile national security needs with environmental concerns

  • Role of recycling and circular economy approaches​

6. Future Outlook and Policy Recommendations

• Emerging Technologies and REE Demand

  • Projected growth in REE requirements for future tech

  • Potential for new materials to reduce dependence

• Policy Frameworks

  • Recommendations for U.S. policy to enhance REE security

  • Importance of international cooperation and alliances

Baked with love,

Anna Eisenberg ❤️