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illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: China is choking the supply of critical minerals to Western defense companies, tightening export controls on rare earth elements vital for manufacturing advanced weapons systems such as jet fighters and precision-guided munitions
• The move has disrupted supply chains and forced defense contractors to seek alternative sources globally, despite recent U.S. trade concessions to Beijing
🔭 The context: China controls about 90% of global rare earth production and has historically used this leverage during geopolitical disputes
• Earlier this year, as tensions with Washington escalated, Beijing curtailed exports of these minerals
• While some flows resumed following U.S. trade concessions in June, restrictions on minerals destined for defense purposes remain in place, revealing China’s strategic intent to influence supply lines critical to U.S. national security
🌍 Why it matters for the planet: Rare earth mining is resource-intensive and environmentally damaging, often leading to toxic waste and habitat destruction
• The scramble for alternative sources may open up mining in regions with weaker environmental safeguards, increasing global sustainability risks
• Conversely, it could accelerate investment in recycling and cleaner sourcing technologies, crucial for reducing the sector’s ecological footprint
⏭️ What's next: The U.S. Department of Defense is expected to fast-track investment in domestic and allied mineral supply chains, including partnerships in Australia and Canada
• Lockheed Martin and other contractors may face cost increases and delays until reliable non-Chinese supplies are secured
• Legislative efforts to incentivize rare earth processing outside China are likely to intensify in the coming months, particularly ahead of the 2026 defense budget cycle
💬 One quote: “This is a reminder that strategic minerals are not just an economic issue — they’re a national security imperative,” — Ellen Lord, former U.S. Undersecretary of Defense for Acquisition and Sustainment
📈 One stat: China supplies roughly 90% of global rare earth elements, which are essential for over 200 defense-related applications
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