A startling new report reveals that the Five Eyes alliance — the United States, United Kingdom, Canada, Australia, and New Zealand — leans heavily on China for rare earth elements (REEs), pivotal in the global mineral supply chain.
This intelligence-sharing coalition, crucial for global security, faces a strategic Achilles’ heel. Their military supply chains, reliant on REEs, are at the mercy of Chinese export decisions.
A new report is sounding the alarm: the Five Eyes alliance (U.S., U.K., Canada, Australia, New Zealand) must cut its reliance on China for rare earth elements (REEs) immediately.
These minerals are vital for our military tech and consumer electronics, and our dependency on… pic.twitter.com/C0dxRV9Pqf
— Krista Monroe (@MsKristaMonroe) August 3, 2024
The report, “Decreasing Rare Earths Dependency: How the Five Eyes Alliance can Minimize Rare Earths Trading Risk with China,” underscores an urgent call to diversify away from China. Once a dominant player, the U.S. now sources up to 80% of its REEs from China.
“The Five Eyes countries are perilously exposed to China for rare earth minerals,” warned Helena Ivanov, an associate fellow at the Henry Jackson Society and the report’s author. China’s grip on the industry is ironclad, controlling 60% of global production and nearly 90% of processing.
REEs are indispensable, not just for military hardware like fighter jets but also for everyday tech gadgets — smartphones, digital cameras, and computer screens. The report ominously predicts that in a conflict scenario, China could sever REE supplies, exhausting U.S. stockpiles crucial for defense within 90 days.
‘Rare earth minerals dominate our everyday lives.’@HelenaIvanov speaks at the launch of her latest report, in collaboration with @tweetfreshwater, ‘Decreasing Rare Earths Dependency: How the Five Eyes Alliance Can Minimise Rare Earths Trading Risk with China’. pic.twitter.com/SznFgKVFpn
— Henry Jackson Society (@HJS_Org) August 1, 2024
Admiral John Aquilino’s testimony before the House Armed Services Committee in 2023 highlighted the stakes, citing China’s potential readiness to invade Taiwan by 2027. Amid these escalating tensions, the alliance’s overreliance on China is increasingly untenable.
China has a history of leveraging its market dominance for political ends, such as contemplating REE export restrictions critical to F-35 fighter jet production. To counter this, the U.S. is striving to strengthen its domestic REE supply chain, exemplified by the Department of Energy’s $17.5 million initiative to lower extraction costs and environmental impacts.
Energy Secretary Jennifer Granholm emphasized that these investments aim to bolster national security and rejuvenate U.S. manufacturing and mining communities.
The report draws a stark parallel to Europe’s former dependence on Russian gas, cautioning that without a shift away from China, democratic nations could face similar strategic vulnerabilities. It advocates for ramped-up domestic production within the Five Eyes to curtail China’s market sway.
“China has morphed into a bad faith actor, and the risks of relying on it for REEs are too significant to ignore,” the report concludes.
Major Points
- The Five Eyes alliance depends heavily on China for crucial rare earth elements (REEs).
- REEs are vital for military and consumer technologies, making supply chains vulnerable to Chinese export limits.
- The U.S. imports up to 80% of its REEs from China, highlighting a significant dependency.
- Recent reports warn that China could cut off REE supplies, crippling the U.S. defense industry within 90 days in a conflict.
- The report recommends increasing domestic REE production within the Five Eyes to mitigate risks and reduce China’s influence.
Conner T – Reprinted with permission of Whatfinger News