Key facts
- US consumes 48,000 tonnes of rare earth permanent magnets annually, producing only 300 tonnes.
- China's export controls and restrictions on technical knowledge pose a risk to US supply chains.
- REalloys is building a heavy rare earth metallization facility outside China.
- Defense contractors like RTX and Lockheed Martin rely on rare earth magnets for critical systems.
The United States faces a critical shortage of domestically produced rare earth permanent magnets, relying heavily on China for supply. While the Pentagon is working to reduce its dependence on Chinese rare earths, the civilian economy remains highly vulnerable. China's tightening export controls and measures to prevent the emigration of skilled workers further complicate efforts to build alternative supply chains. REalloys is a key player attempting to establish a significant non-Chinese supply of heavy rare earth metals and magnets, securing feedstock agreements and developing processing facilities. Major defense contractors like RTX and Lockheed Martin are exposed to these supply chain risks, as Chinese-made magnets have already been found in critical defense systems.