Defense Industry to Face Shortage of Key MaterialsSeptember 17, 2009
 The Pentagon may find itself unable to produce the weapons it seeks in the years to come. The reason will not be lack of funding or budgetary decisions but rather China's control of the "rare earth" metals, according to an article in National Defense. China is the world's leading producer of materials like neodymium, samarium and lanthanum, which are key components in many defense systems. The National Academy of Science is among several organizations in the United States that regard rare earths as vital to national security. For example, neodymium iron boron magnets, known as neo magnets, are considered the strongest permanent magnets and are instrumental in many military devices, including smart-bomb guidance systems. Lanthanum, samarium and praseodymium play a vital role in hybrid-electric battery production and nuclear submarine technology. Rare earths are also critical inputs for jet engines, satellite communication systems and anti-missile systems, according to National Defense. As the domestic demand for rare earths used in green technologies continues to rise, analysts warn that China will ultimately lose its willingness to export these materials – perhaps as early as 2013. China has also fully acquired or gained a controlling stake in two major Australian deposits of rare earth materials, in effect giving it control over the world's known supply of rare earth materials outside of North America. The article notes that the U.S. government has been relatively silent on the issue and that a potential supply crisis might be averted by tapping deposits in Idaho, Montana and Saskatchewan, Canada. Sen. Evan Bayh, D-Ind., and Rep. Mike Coffman, R-Colo., have attached amendments to the fiscal 2010 National Defense Authorization Act calling for a study on the importance of rare earth elements in the defense supply chain. |
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