Pentagon expands mineral deals amid Beijing’s export crackdown

The Pentagon has begun a sweeping $1 billion mineral stockpile program to reduce ￰0￱ on China’s control over critical materials used in defense and tech manufacturing, according to public filings from the Defense Logistics Agency (DLA). This comes as President Donald Trump, who just two days ago vowed 100% tariffs on all Chinese imports, began to hint at a possible meeting with Xi Jinping to cool ￰1￱ ￰2￱ of Defense is attempting to rebuild its mineral reserves after years of dependence on China’s supply chains for key metals such as cobalt, antimony, and rare earth elements vital to weapons systems, radar technology, and fighter jet ￰3￱ to the Financial Times, a former defense official said the $1 billion push was far faster than previous efforts, calling it an “acceleration” of America’s mineral ￰4￱ expands mineral deals amid Beijing’s export crackdown This week, China announced sweeping export restrictions on rare earths and related technologies, triggering fears in Washington and Europe over access to materials vital to both industry and national ￰5￱ reacted quickly, saying he would not meet Xi later this month as planned and declaring that Beijing’s plan was to “hold the world captive.” He warned of a 100% tariff in response, telling reporters, “There is no way that China should be allowed to hold the world captive, but that seems to have been their plan.” Inside the Pentagon, the mineral buildup has become a top-tier national security ￰6￱ Barna, a lawyer at Covington & Burling in Washington, said China’s control over these minerals “would have a direct, palpable and adverse effect on ￰7￱ to field the kind of high-tech capabilities needed for any strategic competition or conflict.” The DLA’s latest filings show intentions to buy up to $500 million in cobalt, $245 million in antimony from ￰8￱ Corporation, $100 million in tantalum from a domestic supplier, and $45 million in scandium from Rio Tinto and APL Engineered Materials, which has offices in Illinois, Japan, and ￰9￱ executive in the mining sector said the government “knows how critical this stuff is and wants to support whatever domestic capacity exists.” The DLA already holds dozens of alloys, ores, and precious metals worth $1.3 billion as of 2023, stored across ￰10￱ materials can only be released by presidential order in wartime or by the under-secretary of defense when deemed ￰11￱ have surged since China’s ￰12￱ exports have plunged, creating panic among Western ￰13￱ trioxide prices have nearly doubled, and automakers are scrambling to find substitutes for rare earths.

Trump’s tariffs and the Pentagon’s long-term funding surge Trump’s One Big Beautiful Bill Act contains $7.5 billion for critical minerals, including $2 billion to bolster the national defence stockpile which the Pentagon intends to spend by late 2026 or early ￰14￱ bill also sets aside $5 billion for mineral supply-chain investments and $500 million for a Pentagon credit program to attract private investment. A former defense official allegedly told the Financial Times several offices managing these programs are now “flush with cash.” The deal with ￰15￱ Corporation, or USAC, will secure about 3,000 tonnes of antimony metal (enough for national emergencies) and sustain the company in what it called a “volatile” ￰16￱ Evans said USAC sources ore from Canada, Mexico, Australia, Chad, Bolivia, and Peru, and reported $15 million in 2024 revenue, with total ￰17￱ consumption that year being 24,000 ￰18￱ after Trump’s tariff threat, he moved to impose the 100% import levy, but delayed enforcement until November 1, two days after his planned meeting with Xi in South Korea.

“We’re gonna have to see what happens. That’s why I made it November 1,” he said. A former ￰19￱ mocked the delay, calling it a “mega Taco;” slang for “Trump always chickens out.” Xi’s government reportedly viewed the move as ￰20￱ Wen of Renmin University said China had grown used to America’s “paper tiger” ￰21￱ that day, Trump walked back his cancellation threat, saying, “I haven’t cancelled, but I don’t know that we’re gonna have ￰22￱ I’m gonna be there regardless, so I would assume we might have it.” Don’t just read crypto ￰23￱ ￰24￱ to our newsletter. It's free .