China’s Monopoly SHATTERED by Pentagon Move!

The Pentagon is acquiring a stake in a rare earth metals company to challenge China’s dominant control over the global supply chain, risking a geopolitical showdown with major economic consequences.

At a Glance

• The Pentagon has invested in MP Materials, a major rare earth producer in the U.S.
• China controls over 80% of global rare earth processing capacity.
• Rare earth elements are essential for military technology, electronics, and renewable energy.
• MP Materials has started domestic processing to reduce dependence on China.
• The Pentagon’s move aims to secure U.S. supply chains amid rising tensions with China.

Strategic Stakes: Pentagon Joins Rare Earth Race

The Pentagon recently acquired a stake in MP Materials, which operates the Mountain Pass rare earth mine in California, as part of a push to create a resilient domestic supply chain for critical materials vital to national security. China currently dominates over 80% of global rare earth processing capacity, giving it near-monopoly control.

Rare earth elements such as neodymium, praseodymium, and dysprosium are critical for manufacturing advanced military equipment, including precision-guided missiles, radar systems, and electric vehicles. MP Materials had historically exported most of its ore concentrates to China for refining but has recently expanded its domestic processing operations. This development marks a significant step in reducing U.S. strategic vulnerabilities tied to foreign supply chains. Read more on Bloomberg and Reuters.

Watch a report: MP Materials CEO on Deal With The Department of Defense.

https://www.cnbc.com/video/2025/07/10/mp-materials-ceo-on-deal-with-the-department-of-defense.html

Geopolitical Fallout and Economic Shockwaves

China’s rare earth monopoly has been used as a geopolitical tool, with previous export restrictions causing global supply disruptions. The Pentagon’s investment signals Washington’s intent to regain strategic autonomy and challenge Beijing’s control. The U.S. government is also advancing legislation to incentivize domestic mining and refining while seeking partnerships with allies like Australia and Canada.

Expanding rare earth production poses environmental and logistical challenges but is crucial for sectors including consumer electronics and renewable energy. The Pentagon’s involvement underscores how control of critical resources is central to global power dynamics, merging economic competition with military strategy. More details at Wall Street Journal and Financial Times.

As competition over rare earths heats up, industries and governments worldwide prepare for a supply chain transformation that could reshape trade patterns and military readiness for years to come.