The United States’ reliance on critical minerals poses significant challenges to national security and the aerospace and defense (A&D) sectors. Critical minerals play a vital role in producing high-tech commercial and defense technologies. These include semiconductor chips, advanced alloys, jet engines, and electronic batteries. However, U.S. reliance on imports for these materials makes the supply chain vulnerable to global disruptions.
Key Critical Minerals, Their Import Reliance, and Their Applications
The U.S. is heavily dependent on imports for several critical minerals, including:
- Arsenic Metal: 100% import reliant, used in semiconductors for solar cells and telecommunications.
- Cobalt: 76% reliant, vital for jet engines and electronic batteries.
- Copper: 48% reliant, used as a corrosion-resistant alloying element.
- Gallium: 100% reliant, integral to semiconductor chips and secure communications.
- Germanium: Over 50% reliant, used in fiber optics and solar applications.
- Hafnium: Essential for aerospace alloys.
- Magnesium: Over 50% reliant, critical for lightweight castings.
- Molybdenum: Over 90% reliant, key for high-strength castings.
- Scandium: 100% reliant, used in advanced alloys and lasers.
- Tantalum: 100% reliant, essential for jet engines and aerospace alloys.
- Titanium Sponge: 100% reliant, vital for aerospace-grade alloys.
- Tungsten: Over 50% reliant, used in high-density alloys and helicopter blades.
Figure 1: Key Critical Minerals and Their Applications with Their Import Reliance
Strategic Defense Mineral Policy
Critical minerals are categorized under Section 7002 of the Energy Act of 2020, which identifies materials with high supply chain risks. U.S. government agencies, including the Department of Defense (DoD) and the Department of Energy (DOE), have created critical mineral lists tailored to their missions. These lists provide a comprehensive view of U.S. dependencies, revealing that China dominates global production of many key minerals.
The Importance of Securing Supply Chains
Global instability, including conflicts and market disruptions, has exposed vulnerabilities in U.S. supply chains. Events like the COVID-19 pandemic and the conflict in Ukraine have intensified these challenges. Aerospace and defense companies rely on high-purity materials that require extensive qualification processes, making rapid transitions to new suppliers difficult.
Policies restricting critical mineral imports must align with global market realities. A deliberate, strategic approach to sourcing can mitigate risks and reduce U.S. dependencies on adversarial nations.
Challenges in the Aerospace and Defense Sector
The A&D industry requires materials with stringent quality standards, often taking years to certify new suppliers. Unlike other industries, A&D companies procure materials in smaller quantities, which complicates supply chain negotiations. To counter these challenges, companies employ strategies such as long-term supplier agreements, material stockpiling, and recycling.
Global Partnerships and Domestic Investments
Executive Order 14017, “America’s Supply Chains,” highlighted the need to strengthen critical supply chains. Bilateral agreements, like the U.S.–Japan Critical Minerals Agreement, aim to secure reliable market access and reduce trade barriers. Expanding these partnerships can bolster the U.S. supply chain while fostering collaboration with trusted allies.
Domestic investments are also critical. Incentives for American companies to establish mines and production facilities can reduce reliance on imports. Programs like the Mineral Security Partnership and initiatives under the Defense Production Act can play a pivotal role in this effort.
Recommendations for Future Action
Aerospace Industries Association (AIA) recommends the following strategies to strengthen critical mineral supply chains:
- Revitalize the National Defense Stockpile: Allocate $1 billion for stockpiling essential materials like titanium sponge and aerospace-grade ingots.
- Issue Section 45x(c)(6) Guidance: Provide clear eligibility requirements for critical minerals tax credits.
- Invest in Infrastructure: Re-start domestic production facilities and invest in new mining and refining infrastructure.
- Enhance DoD and DOE Funding: Leverage funding tools to support domestic critical mineral projects and incentivize recycling.
Wrapping Up!
The aerospace and defense sectors are at a crossroads, where securing critical minerals is paramount for technological and national security. Collaboration with global allies, incentivizing domestic production, and strategic investments can reduce U.S. dependence on imports. By prioritizing critical mineral supply chains, the U.S. can strengthen its defense capabilities and maintain a competitive edge in the global arena.
To ensure success, the government and industry must align policies with market realities and foster innovation. These efforts will pave the way for a resilient and sustainable future in aerospace and defense.
