4 minPolitics
Pentagon plans domestic war stockpiles but faces a critical minerals shortage
The Pentagon's FORTRESS America plan would store critical materials on U.S. soil to keep forces running during a major war, but domestic supply of rare earths and tungsten falls far short of what is needed.
The Pentagon is preparing to build stockpiles of critical materials on American soil to sustain its forces through a major conflict, a shift that is running into a serious problem: the United States produces too little of the minerals it would need. The effort, known as FORTRESS America, was formally established on Sept. 30 and is tied to base planning that assumes military installations could operate for 90 days without grid power.
The central concern behind the plan is the risk that an adversary could disrupt domestic production rather than attack troops abroad. The Pentagon is weighing the possibility that China could target U.S. factories and power networks through cyberattacks, drones and electromagnetic attacks. As a reference point, reporting cited cyberattacks in Poland in December 2025 that hit about 30 renewable energy sites and a heat and power plant. Under the plan, reserves would be held inside the United States instead of in overseas depots near likely battlefields, a change that reflects how the military now views the threat to its supply chains.
The scale of the challenge is most visible in rare earths. The United States produces less than 1 percent of its most common rare-earth magnet. In 2025, American demand for rare-earth magnets reached about 48,000 tons, while domestic supply was roughly 300 tons. Domestic capacity is expected to approach 5,000 tons by the end of the year, which would still cover only about a tenth of demand. The shortage has already had industrial consequences: Ford idled its Chicago Explorer plant for a week in May 2025 because of rare-earth shortages. China has repeatedly tightened its export controls on these materials, leaving American manufacturers exposed.
Tungsten presents a similar picture. The United States has not commercially mined tungsten since 2015, and it relies on imports for more than half of its supply. The Pentagon has signed a contract with Elmet worth up to $2 billion, but only $150 million of that amount is guaranteed. Deliveries under the agreement depend on new supply from projects in Nevada, Australia and Spain that have not yet come online.
Broader critical-mineral dependence is also large. In 2025, U.S. imports of critical minerals, excluding rare earths, totaled about $60 billion. Policymakers have pointed to these figures as evidence that the country's industrial base remains vulnerable to foreign suppliers, particularly China.
The cost of FORTRESS America remains unclear. Estimates reviewed in reporting range from tens of billions to hundreds of billions of dollars. To help fund the effort, the Pentagon is exploring public-private partnerships. Analysts say the department is unlikely to meet its near-term goals given the pace of domestic production.
A key policy deadline is approaching. Beginning Jan. 1, 2027, defense contractors will be barred from using rare earths, magnets and tungsten sourced from China, Russia, Iran and North Korea. Washington has repeatedly granted waivers to that rule because domestic supply has not been sufficient to meet demand, raising questions about whether the deadline can be enforced as written.
Source: fortune.com
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