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China's Heavy Rare Earth Alloys Influence over West's Industrial Security Supply Chain

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  • In October 2025, geopolitical tensions revealed U.S. industrial vulnerability due to dependence on China for processed rare earth materials.
  • President Trump proposed 100% tariffs on Chinese imports effective November 1, prompting Beijing to threaten cutting off processed rare earth exports.
  • The tariffs were not implemented by the November deadline, highlighting China's strategic leverage over midstream rare earth processing which the U.S. lacks.
  • REalloys Inc. (ALOY) aims to become North America's first commercial producer of heavy rare earth metals & alloys by the end of 2026 to bridge a 40-year gap.
  • China controls 90–95% of global rare earth processing, while the U.S. & Europe maintain zero strategic stockpiles of processed rare earths.
  • The primary challenge is midstream metallization, involving complex separation of 17 elements & conversion to metals at temperatures exceeding 1,200 degrees.
  • REalloys' partner SRC utilizes an AI-driven system in Saskatoon requiring only six workers to operate, compared to roughly 80 workers in comparable Chinese facilities.
  • MP Materials focuses on light rare earths for consumer electronics, whereas defense systems require heavy rare earths like dysprosium & terbium for high-temperature stability.
  • U.S. defense procurement rules will tighten on January 1, 2027, making Chinese-origin rare earth materials ineligible for qualifying weapons systems.
  • Lockheed Martin (LMT) relies on rare earths for the F-35 program, THAAD, & PAC-3 missile defense systems.
  • RTX Corporation (RTX) utilizes these materials in Patriot missile systems, advanced radars, & aircraft engines.
  • The Boeing Company (BA) integrates rare earths into its defense division for P-8 Poseidon aircraft, KC-46 tankers, & Apache helicopters.
  • Northrop Grumman (NOC) depends on these materials for the B-21 Raider stealth bomber, unmanned aerial systems, & space sensors.
  • General Dynamics (GD) utilizes rare earths in Columbia-class submarines, Abrams tanks, & land systems.
  • The article discloses that the owner of OilPrice.com holds shares or stock options in REalloys, creating a potential conflict of interest.