# DoD Implements Rare Earth Magnet Restrictions

The Department of Defense has established a new DFARS regulation (225.7018) that bans the use of Chinese-origin rare-earth magnets across the entire defense supply chain effective January 1, 2027. This mandate directly impacts major defense prime contractors including Lockheed Martin, Raytheon Technologies, Northrop Grumman, L3Harris, and BAE Systems. Due to limited availability of Western sources for critical materials such as samarium, the DoD anticipates reliance on nonavailability waivers during a transition period, which may introduce supply chain vulnerabilities. Additionally, similar restrictions on gallium and germanium are set to take effect by December 2027, posing further compliance challenges for electronics-focused defense contractors.

- **Why this matters:** Defense contractors must assess their supply chains for compliance with the January 2027 rare-earth magnet ban and prepare for potential nonavailability waiver processes.
- Companies should evaluate sourcing strategies for critical materials like samarium, gallium, and germanium to mitigate risks associated with restricted Chinese-origin components.
- Procurement professionals need to incorporate these regulatory requirements into contract planning and risk management to ensure uninterrupted supply and compliance.
- This regulation signals increased scrutiny on supply chain origins, emphasizing the importance of transparency and diversification in defense materials procurement.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Regulatory Compliance
**Published:** September 28, 2026

### Government Entities
- Department of Defense (DoD)

### Vendors
- Lockheed Martin (prime contractor)
- Raytheon Technologies (RTX) (prime contractor)
- Northrop Grumman (prime contractor)
- L3Harris (prime contractor)
- BAE Systems (prime contractor)

### Sources
- [DFARS 2027 Rare Earth Magnet Deadline Explained](https://rareearthexchanges.com/news/dfars-2027-rare-earth-magnet-compliance) - rareearthexchanges.com