Pentagon invests over $1 billion in strategic resources to reduce dependency on China
Amid increasing geopolitical tensions and ongoing rivalry between the United States and China, the Pentagon announced a significant initiative to invest more than a billion dollars into critical minerals vital for the defense industry and technological advancement.
This strategic move aims to build stockpiles and diversify supply sources in response to export restrictions and China’s dominance in rare earth elements.
The U.S.
Department of Defense is actively seeking new resources to meet domestic needs, aiming to lessen reliance on Chinese supplies, which currently control up to 80% of the global market for critical metals.
This concern intensifies amid Beijing’s recent export bans on certain strategic substances, potentially impacting the development of advanced technologies and military systems.
Additionally, U.S.
policy measures include additional tariffs and restrictions on imports from China to strengthen domestic manufacturing capacities and national security.
The law known as the ‘One Big Beautiful Bill Act’ allocates up to $7.5 billion to develop internal resources and strategic reserves.
These steps demonstrate the serious intentions of the United States to establish an independent and secure supply chain of critical materials necessary for defense and high-tech industries, reinforcing its position in global competition.