Beijing is reportedly exploring a decision to limit the export of rare earth minerals to hurt U.S. defense contractors, according to Financial Times. The rare earth minerals are crucial in the manufacture of Lockheed Martin’s F-35 and other sophisticated weaponry.
- China’s decision follows deteriorating ties with the U.S, with Joe Biden’s administration indicating he would maintain pressure against Beijing but take a more multilateral approach.
- Last year, China’s Foreign Ministry said it would sanction Lockheed Martin, Boeing, and Raytheon for selling arms to Taiwan.
- Hopes of U.S companies aiming to break into the rare earths industry have been dashed by strict environmental regulations on extracting and processing.
- Currently, the U.S has no refining capacity for rare earths, although the situation is changing.
- Industry executives have been asked to tell how badly the U.S and European companies would be affected if China restricts exports.
China controls about 80% of the global supply of rare earths minerals
