# DoD Identifies Rare-Earth Supply Risks

A report highlights U.S. defense supply-chain exposure because modern weapons rely on rare-earth magnets while China controls an estimated 87–90% of rare-earth processing. The report also points to pressure on munitions from low-cost drones and reported Patriot and THAAD inventory shortfalls. It identifies potential demand for domestic or diversified mineral processing, magnet production, and resilient defense manufacturing, but provides no active solicitation, funding amount, or procurement contact.

- Defense procurement teams and contractors can use this as a supply-chain risk signal when assessing rare-earth and magnet sourcing dependencies for defense production.
- Suppliers with domestic or diversified processing and magnet-production capabilities may be positioned to address potential demand; the report does not establish a funded opportunity or acquisition timeline.
- Contractors serving munitions and air-defense markets should account for the reported inventory pressures in production-capacity and supplier-risk assessments, without treating them as a specific contract announcement.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Published:** October 05, 2026

### Government Entities
- U.S. Department of Defense (DoD)

### Sources
- [US Defense Supply Chain Rare Earth Vulnerabilities Explained](https://rareearthexchanges.com/news/us-defense-supply-chain-rare-earth-vulnerabilities) - Rare Earth Exchanges