Overview
- Senate Armed Services leaders and Pentagon officials said China’s control of key minerals poses a near‑term threat to U.S. defense manufacturing and readiness.
- The Defense Department reported $975 million invested through Defense Production Act Title III and the Industrial Base Fund to shore up supply chains.
- Lawmakers pressed the department over a 15% equity stake in MP Materials estimated at $400 million, with Jack Reed questioning the legal basis for such investments.
- Industrial policy leaders defended equity stakes and price floors as tools to attract private capital and counter what they described as manipulated Chinese pricing.
- Named efforts include the MP Materials rare‑earth deal, a Korea Zinc‑backed U.S. smelter for 13 nonferrous metals, and recycling projects to recover gallium and scandium, as senators clashed over permitting and environmental safeguards.