From Fortune · Bilin Lin · · 2m
Pentagon's war stockpile plan hits a minerals wall
The Pentagon wants to stockpile critical minerals to survive a major war, but America makes almost none of what it needs and relies on China.
In brief
The Pentagon wants to stockpile critical minerals to survive a major war, but America makes almost none of what it needs and relies on China. The Pentagon's FORTRESS America program aims to stockpile minerals and munitions for wartime resilience, but America's dependence on foreign supply chains, especially China's…
Pentagon plans war stockpile
The Pentagon wants to stockpile critical minerals, fuel, and munitions on American soil to keep fighting a major war if cyberattacks and sabotage knock out factories and power grids.
FORTRESS America formally established
The initiative, known as FORTRESS America, short for Federal Operations for Resilience, Troop Resources, Energy, Supply, and Survivability, was formally established on September thirtieth.
Scale rivals Cold War effort
One defense expert says the scale of the planned effort is on par with what the Department of Defense pursued during the Cold War, but focused on domestic reserves instead.
“on par with what the DoD pursued during the Cold War”
America produces almost no rare earths
The U.S.produces less than one percent of the most common type of rare-earth magnet it uses.U.S.demand reached roughly forty-eight thousand metric tons in twenty twenty-five, while domestic sources supplied just three hundred metric tons.
China controls mineral processing
China dominates the processing of many critical minerals and has kept American companies short even in peacetime.China could disrupt U.S.industrial production through cyber operations, drones, electromagnetic warfare, or attacks by people inside the country.
Tungsten deal won't fill stockpile soon
The Elmet Group won a Defense Logistics Agency contract worth up to two billion dollars to supply tungsten to the National Defense Stockpile.Only one hundred fifty million dollars is guaranteed.
Cost could reach hundreds of billions
A senior defense official said officials are still assessing costs. Air and Space Forces Magazine estimated the broader initiative could cost scores of billions of dollars, if not hundreds of billions.
Pentagon unlikely to meet goals soon
Analysts warn that supply chain independence cannot be rushed.Starting January first, twenty twenty-seven, federal rules require defense contractors to stop buying rare earths, magnets, and tungsten from China, Russia, Iran, and North Korea.
The takeaway
The Pentagon's FORTRESS America program aims to stockpile minerals and munitions for wartime resilience, but America's dependence on foreign supply chains, especially China's rare-earth dominance, makes the goal difficult to achieve quickly.
