U.S. defense plans for 300,000 drones face supply risks as China controls 98% of rare earth magnet production, per Goldman Sachs.
The Pentagon has ordered 30,000 one-way attack drones, with plans to expand to over 300,000 by early 2028. The initiative marks the largest drone procurement in U.S. history but hinges on rare earth magnets, a critical component for drone functionality.
China manufactures approximately 98% of the world’s rare earth magnets, according to Goldman Sachs. This dependency poses a significant supply chain vulnerability for U.S. defense programs, which rely on these materials for advanced military technology.
REalloys (NASDAQ: ALOY) has developed the only fully non-Chinese “mine to magnet” heavy rare earth supply chain in North America, potentially mitigating the risk. The company’s integrated production could address the Pentagon’s supply concerns as demand surges.