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CommoditiesHigh Impact•11 March 2026•

1 min read

US Faces Critical Rare Earth Shortage with Only Two Months of Supply Remaining

Industrial pipes and valves with blue and green flames, overlaid with a green line and bar chart, on an orange background.

Key Facts

1The US has only two months of rare earth supplies remaining according to SCMP reports.

2Beijing could gain indirect leverage over US military operations if exports or supply chains are restricted.

Recent reports indicate a critical vulnerability in the United States' supply chain for rare earth minerals, with reserves estimated to last only 60 days. According to data from SCMP, this shortage highlights a strategic dependency on Chinese exports for materials essential to high-tech manufacturing and national security. The scarcity poses a significant risk to the US military, as Beijing could gain indirect leverage over defense operations if supply chains are further restricted. Analysts suggest that such a supply crunch is likely to drive up commodity prices, potentially benefiting non-Chinese producers like MP Materials (MP). However, major defense contractors such as Lockheed Martin (LMT) and Raytheon (RTX) face mounting pressure due to their reliance on these critical inputs. The situation underscores the urgent need for the US to diversify its sourcing and bolster domestic production to mitigate growing geopolitical risks.