China's Rare Earth Export Restrictions Pose Threat to U.S. Defense

On April 4, 2025, China announced restrictions on the export of crucial rare earth minerals, intensifying tensions with the U.S. and its allies. These minerals are vital for a range of U.S. sectors, including defense, electronics, and energy. NioCorp Developments Ltd. CEO Mark A. Smith emphasized the severe impact on U.S. national security, highlighting the risk to advanced defense systems dependent on these resources.

Smith likens this move to a "geopolitical earthquake," underscoring the potential disruptions in military production and strategic defense postures. The restrictions cover middle and heavy rare earths like samarium and dysprosium, used extensively in military technology.

NioCorp is advancing a critical minerals project in Nebraska aimed at offsetting Chinese supply by producing rare earths domestically. This initiative could be crucial in mitigating supply chain vulnerabilities and ensuring continued access to essential materials.