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U.S. Defense Industry Must Halt Chinese Rare Earth Purchases by January 2027, But Domestic Supply Falls 48,000 Metric Tons Short of Demand

2026-07-28 02:44:12

According to Reuters, the U.S. defense industry must halt purchases of Chinese rare earths, tungsten, molybdenum, and tantalum by January 1, 2027, as part of President Trump's effort to decoupling critical minerals from China. However, domestic production capacity remains drastically insufficient. In 2025, U.S. demand for rare earth magnets alone is projected at 48,000 metric tons, but domestic sources can supply only 300 metric tons, with projected year-end capacity reaching just 5,000 metric tons. Industry analysts warn the infrastructure buildout will take years beyond the deadline, and existing exemption mechanisms are likely to remain in effect despite stricter conditions.

Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.

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