FEBRUARY 25, 2026 – Securing a resilient supply chain for critical minerals is fundamental to national security and the economy, said Michael P. Cadenazzi Jr., assistant secretary of war for industrial base policy, who testified today at a Senate Armed Services Committee hearing in Washington.
He noted that there is a growing demand for U.S. capabilities from allies and partners, such as fifth-generation aircraft, precision-guided munitions, satellite constellations and next-generation naval vessels. Cadenazzi said those capabilities all depend on a reliable supply of rare earth elements, including gallium antimony and germanium, as well as dozens of others.
“For decades, we have outsourced and offshored mining and processing, creating a strategic vulnerability of the highest order. Today, our primary strategic competitor, China, controls the global supply chain for numerous critical minerals,” he said.
On heavy rare earths alone, China controls 95% of global output, with the United States importing almost 100% of what it uses, 90% of that coming from China.
“This control provides Beijing with the ability to weaponize these supply chains, threatening to disrupt our defense industrial base and compromise military readiness in a crisis; this is not a theoretical risk. It is a clear and present danger to our national security,” Cadenazzi said.
To address this vulnerability, the War Department developed a comprehensive, multiyear strategy designed to create a secure, resilient and sustainable supply chain ecosystem, Cadenazzi said.
Included in that approach is a commitment to reshore and onshore the production of critical minerals. Congress provided funding to do this, he said, utilizing the Defense Production Act.
Cadenazzi said his office partners with colleagues in the Office of Strategic Capital to offer loans, loan guarantees and debt financing options to bring mineral supply chains to friendly shores.
“Through these tools, we are sending a clear and sustained demand signal to the industrial base. We are working across the entire value chain, from mine to front line, to build our resilience,” he said.
Although DOW prioritizes domestic production, Cadenazzi said no single nation can achieve complete self-sufficiency. Therefore, the supply chain includes allies and America’s closest partners.
The department is also aggressively investing in research and development to mitigate demand for the most heavily contested minerals.
“Our scientists at [the Defense Advanced Research Projects Agency] and other service research labs are pioneering the development of next-generation materials and novel manufacturing techniques that can reduce or eliminate the need for certain rare earths and other critical inputs,” Cadenazzi said.
He noted that other DOW strategies include funding the development of advanced recycling technologies to recover rare earth from systems and materials being retired, and modernizing the national defense stockpile to ensure it serves as an effective buffer against near-term supply chain shocks.
“We are conducting a rigorous, data-driven analysis of our strategic requirements for 21st-century contested environments and [we] are taking action to acquire materials that face the most acute supply chain risks,” Cadenazzi said.
By David Vergun
Pentagon News