# DoD Addresses Heavy Rare Earth Supply Risks

The U.S. Department of Defense is actively managing supply chain vulnerabilities caused by Chinese export quotas on critical heavy rare earth elements dysprosium and terbium, essential for high-performance NdFeB permanent magnets used in missile actuators, radar systems, and submarine motors. These export restrictions, enforced under DFARS Clause 225.7018, have prompted the DoD to issue national security waivers and accelerate efforts with allied partners to develop domestic and allied heavy rare earth processing and magnet manufacturing capabilities. Procurement professionals and contractors should anticipate ongoing regulatory challenges and supply risks affecting defense manufacturing components reliant on these materials.

- The DoD's national security waivers indicate temporary relief but highlight persistent supply chain fragility for critical rare earth materials.
- Allied companies like MP Materials (U.S.), Lynas Rare Earths (Australia), and Iluka Eneabba (Australia) are key players in expanding heavy rare earth processing capacity, presenting partnership and subcontracting opportunities.
- Procurement strategies should incorporate risk mitigation for rare earth dependencies, including sourcing diversification and engagement with emerging domestic and allied suppliers.
- Regulatory compliance with DFARS Clause 225.7018 remains critical, requiring close coordination between contracting officers and suppliers to navigate export controls and waivers.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Regulatory Compliance
**Published:** September 14, 2026

### Government Entities
- Department of Defense (DoD)
- United States Congress

### Vendors
- MP Materials (domestic mining and magnet manufacturing developer)
- Lynas Rare Earths (allied heavy rare earth processing)
- Iluka Eneabba (allied heavy rare earth processing)

### Sources
- [The Heavy Rare Earth Firewall: Chinese Dysprosium and Terbium Export Quotas Impacting Western Defense Actuators](https://streamlinefeed.co.ke/news/heavy-rare-earth-firewall-chinese-dysprosium-terbium-export-quotas-2026) - streamlinefeed.co.ke