The Pentagon has launched a $1 billion buying spree to stockpile critical minerals

The Pentagon is moving to purchase up to $1 billion worth of critical minerals as part of an accelerated stockpiling effort to curb U.S. reliance on China, the Financial Times reported Sunday, citing public filings from the Defense Logistics Agency (DLA).

According to the report, the Trump administration instructed the Defense Department to expand its national reserves after Beijing imposed tighter export restrictions on materials vital to defense and high-tech manufacturing. China continues to dominate global supply chains for many such metals, which are essential to fighter jets, radar systems, and smartphones.

“They’re definitely looking for more, and they’re doing it in a deliberate and expansive way,” a former U.S. defense official told the newspaper. The $1 billion purchase plan represents a sharp increase from previous stockpiling levels, the report added.

Countering China

Beijing last week unveiled sweeping new limits on rare-earth exports and related technologies, prompting President Donald Trump to cancel a planned meeting with Chinese President Xi Jinping and to announce plans for a 100% tariff on Chinese imports. “There is no way that China should be allowed to hold the world ‘captive,’” Trump wrote on Truth Social.

The new restrictions have intensified concern among U.S. industries dependent on Chinese supply. China currently mines more than half of the world’s rare earths and controls over 90% of global processing capacity, giving it overwhelming dominance in the supply chain. The Pentagon’s stockpiling initiative is intended to guard against potential disruptions—particularly amid geopolitical tensions.