U.S. Invests Billions to End Critical Mineral Dependence on China

The United States is implementing a multi-billion dollar strategy to secure critical mineral supply chains after a conflict with Iran revealed severe vulnerabilities in its defense industrial base. During the first 16 days of that conflict, the U.S. expended over 11,000 munitions, exposing a lack of endurance in replenishing missile and ammunition stockpiles.

A July 2026 Government Accountability Office assessment found the U.S. is fully import-dependent for 12 critical minerals and relies on imports for at least half of its requirements for another 34. China currently dominates the production of gallium and tungsten, the latter of which saw prices quadruple in early 2026.

To reduce vulnerability to Chinese export licenses and price shocks, the Pentagon and the U.S. Department of Commerce are funding projects globally and domestically. These initiatives include investments in the Serra Verde rare-earth project in Brazil, gallium production at the Wagerup refinery in Australia, and tungsten mining in Nevada. Additionally, the Department of Commerce is providing funding for the Round Top mining and processing project in Texas. Acting Secretary of the Army Adam Telle has also launched the Manufacturing Rodeo to stress test the industrial base's capacity.