Five Eyes Countries Urged to Cut China Reliance for Rare Earths

A new report highlights the critical need for countries within the Five Eyes alliance partnership — the United States, the United Kingdom, Canada, Australia, and New Zealand — to reduce their reliance on China for rare earth elements, emphasizing the strategic vulnerability this dependence creates for Western military and technological supply chains.

Countries within the Five Eyes intelligence partnership are heavily dependent on China for rare earth elements (REEs), according to a new report, titled "Decreasing Rare Earths Dependency: How the Five Eyes Alliance can Minimize Rare Earths Trading Risk with China."

The elements are crucial in producing military equipment, and the reliance on China poses significant risks to Western military supply chains. The report calls for urgent diversification of REE supplies.

Helena Ivanov, associate fellow at the Henry Jackson Society and the report's author, told Fox News Digital, "The Five Eyes countries are dangerously exposed to China when it comes to rare earth minerals, as they are all overly reliant on China for this critical resource."

REEs are essential for defense technologies such as fighter jets. The report warns that China could leverage its control over the REE market for political purposes, potentially cutting off supplies during a conflict. A spokesperson for the House Select Committee on the Chinese Communist Party (CCP) echoed this, stating, "The CCP increasingly leverages its markets, technology, and control over critical minerals to pressure the United States and its allies and partners."

China dominates the global REE market, accounting for 60% of production and nearly 90% of processing. This control extends beyond military applications; REEs are also vital in manufacturing smartphones, digital cameras, and other electronics. The report cautions that China could deplete U.S. stockpiles of REEs necessary for defense in a confrontation scenario within 90 days.

The U.S. depends on China for up to 80% of its rare earth element imports.

Admiral John Aquilino, leader of the Indo-Pacific Command, testified in 2023 about China's readiness to invade Taiwan by 2027, further highlighting the strategic risks of overreliance on China.

The U.S. has started initiatives to strengthen domestic REE supply chains to address these vulnerabilities. In April, the Department of Energy announced $17.5 million in funding for projects to reduce REE extraction's cost and environmental impact, part of President Joe Biden's Bipartisan Infrastructure Law.

Secretary of Energy Jennifer Granholm stated that these investments "will increase our national security while helping rebuild America's manufacturing sector and revitalize energy and mining communities across the country."

The report underscores the necessity for the Five Eyes alliance to reduce dependency on China. Without such measures, democratic countries might face situations similar to Europe's past reliance on Russian gas.

Enhanced collaboration within the Five Eyes alliance is crucial, with countries like Canada, Australia, and the U.S. ramping domestic REE production to diminish China's market influence.

"In the last few years, China has become a bad faith actor, and substantial issues and risks are involved with relying on China for REEs," the report said.