A recent report indicates that the Five Eyes intelligence alliance—comprising the United States, the United Kingdom, Canada, Australia, and New Zealand—relies heavily on China for rare earth elements (REEs), which are essential in the mineral supply chain market.
The Five Eyes alliance has become a cornerstone of global intelligence and security efforts. The group cooperates on intelligence issues and shares sensitive data to maintain collective security and address global threats.
Rare earth elements are critical for military equipment production, and the report highlights that Western military supply chains are considerably at risk due to potential Chinese restrictions on REE exports.
The report, titled “Reducing Rare Earths Dependency: How the Five Eyes Alliance Can Mitigate Trading Risks with China,” emphasizes that the Five Eyes nations must explore alternatives to China for their REE supplies.
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Australian Prime Minister Anthony Albanese (L), US President Joe Biden (C), and British Prime Minister Rishi Sunak (R) speak to the press following a trilateral meeting during the AUKUS summit on March 13, 2023, in San Diego, California. President Biden hosted the meeting to discuss the acquisition of nuclear-powered submarines under the pact among the three nations. (Leon Neal/Getty Images)
The U.S. was once a major player in the rare earth elements sector. Currently, however, it depends significantly on China, sourcing up to 80% of its REEs from the country, as stated in the report.
“The Five Eyes nations are fundamentally vulnerable to China regarding rare earth minerals, as they are overly reliant on Chinese sources for this vital resource,” said Helena Ivanov, associate fellow at the Henry Jackson Society and the report’s author, in an interview with Fox News Digital.
Chinese President Xi Jinping inspects the honor guard during a welcome ceremony at The Great Hall of the People on November 22, 2023, in Beijing, China. (Florence Lo – Pool/Getty Images)
The report indicates that rare earth elements are essential for defense technologies such as fighter jets, allowing China to wield its supply chain supremacy for political leverage on the global stage.
On condition of anonymity, a spokesperson for the House Select Committee on the CCP informed Fox News Digital that “the CCP increasingly exploits its markets, technology, and control over vital minerals to pressure the United States and its allies. To counter these coercive actions, the United States should enhance trade and technological partnerships with its allies and diminish dependence on the PRC regarding critical supply chains.”
China dominates the supply chain, claiming 60% of global production and nearly 90% of processing in the sector.
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Rare earth elements not only play a significant role in military technology but are also crucial for the production of smartphones, digital cameras, computer hard drives, LED and fluorescent lighting, flat-screen televisions, computer monitors, and other electronic displays.
“Unless alternatives are discovered, manufacturers of critical minerals in North America estimate that in the event of a confrontation, China could abruptly halt the supply of essential minerals to the U.S. in wartime, depleting the U.S. stock of minerals required for its defense system in under 90 days.”
Admiral John Aquilino, head of the Indo-Pacific Command, testified before the House Armed Services Committee in 2023, asserting that China aims to be poised to invade Taiwan by 2027. Given the ongoing tensions over Taiwan, the extensive reliance on a potentially adversarial China raises alarms.
President Joe Biden (R) and Chinese President Xi Jinping exit after a meeting during the Asia-Pacific Economic Cooperation (APEC) Leaders’ week in Woodside, California, on November 15, 2023. (Brendan Smialowski/AFP via Getty Images)
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China has openly demonstrated its readiness to take advantage of its market supremacy by restricting exports as it sees fit. The report notes that in 2023, China considered limiting exports of rare earth minerals crucial for the production of F-35 fighter jets and other military equipment.
The U.S. is acutely aware of its susceptibility to China’s market dominance and has initiated actions to decrease its reliance on Beijing. The Department of Defense and other agencies are implementing programs to bolster the domestic supply chain of REEs. In April, the Department of Energy announced $17.5 million under President Biden’s Bipartisan Infrastructure Law for four projects aimed at lowering costs and lessening the environmental impact of REE extraction.
A rare-earth mine in Baiyun’ebo or Bayan Obo, located in Inner Mongolia, China. These mines contain one of the largest deposits of rare earth metals in the world. (Bert Van Dijk/Getty Images)
Secretary of Energy Jennifer Granholm stated at the time that the announced investments “will enhance our national security while aiding in the revitalization of America’s manufacturing sector and energizing mining and energy communities nationwide.”
The vulnerabilities underscored in the report emphasize the necessity for the Western alliance to diminish its dependency on China. Absent such risk mitigation, the report warns, democratic nations could experience a scenario reminiscent of Europe’s previous dependence on Russian gas before Moscow’s invasion of Ukraine.
According to the report, collaboration within the Five Eyes Alliance is vital, enabling countries like Canada, Australia, and the U.S. to boost domestic production and lessen China’s market dominance.
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“In recent years, China has emerged as a bad faith actor, and significant concerns and risks are associated with relying on China for REEs,” the report concludes.
