China dominates processing, refining over 90% of the world’s rare earths. It supplies 98.8% of global gallium and is the sole provider of samarium.

In April 2025, China restricted exports of seven critical minerals—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—citing national security. This followed earlier bans on gallium, germanium, and antimony.

78% of U.S. defense systems depend on at least one of these minerals; for the Navy, it’s over 91%.

Example: Each F-35 jet uses around 50 pounds of samarium magnets, critical for missile systems and high-temperature operations.

The bottleneck lies not just in mining but in refining. Most raw materials mined globally are processed in China—then reimported.

As of now, 88% of Pentagon supply chains for critical minerals touch Chinese facilities.

After China’s new export controls, prices for components using gallium rose 6%, antimony 4.5%, signaling the immediate impact on global supply chains.

South Korea is set to finalise a $6 billion arms deal with Poland later this month for 180 K2 main battle tanks.

The contract follows a 2024 deal for 180 K2 Black Panther tanks, part of Poland’s plan to acquire up to 1,000 units.

Under the new deal, 117 tanks will be built in South Korea by Hyundai Rotem, while 63 will be produced in Poland with PGZ. Deliveries will include two variants: the K2GF, tailored for immediate NATO integration, and the K2PL, an advanced version with enhanced armour, powertrain, and active protection systems.

The U.S. Air Force has slashed its F-35 fighter jet request for fiscal 2026 from 48 to 24 aircraft, significantly cutting into Lockheed Martin’s projected orders.

The move is part of a broader Pentagon effort to reduce projected military spending by 8% over five years, as directed by Defense Secretary Pete Hegseth.

The request could undergo substantial changes as it moves through Congress. Lockheed Martin has many supporters in Congress who may be able to change the budget outlook for the F-35.

Canada’s F-35 fighter jet purchase will cost nearly 50% more than initially disclosed, according to a report by Auditor-General Karen Hogan.

The federal government estimated the 88-jet deal at $19 billion in 2022, but updated figures put the cost at $27.7 billion.

The report comes as Prime Minister Mark Carney’s government considers scaling back the order or turning to European alternatives to reduce reliance on U.S. military equipment.

Our deal with China is done, pending final approval from President Xi and me.

Full magnets and any necessary rare earths will be supplied up front by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!).

We are getting a total of 55% tariffs, China is getting 10%.