Western weapons production is under threat. China has cut off critical supplies to the US defense industry by restricting access to vital minerals. Companies are delaying deliveries, searching for new sources worldwide, and prices for some resources have skyrocketed 60-fold, The Wall Street Journal reports. 

China cuts off access to rare earth elements

In response to the escalating trade war with the US, Beijing tightened export controls on rare earth elements — essential for manufacturing weapons, from drones to fighter jets. Today, China controls about 90% of the global rare earth minerals market. American manufacturers have become dependent on Chinese suppliers.

Companies are already reporting major disruptions. One drone manufacturer had to delay shipments by two months while searching for non-Chinese magnets. Prices for samarium, a mineral needed for magnets that withstand extreme temperatures, have increased 60 times. The mineral restrictions highlight just how dependent the US military is on China.

Ban on germanium, gallium, and antimony hits night vision and munitions

Since December, China has officially banned exports to the US of germanium, gallium, and antimony — minerals used in machine guns, shells, and night vision devices. Manufacturers are already sounding the alarm.

The CEO of American firm Leonardo DRS stated that germanium reserves are at the limit. This element is critical for infrared sensors in missiles. The company is actively searching for substitutes and new sources.

The Pentagon has ordered a phase-out of Chinese rare earth magnets by 2027, but most companies only have a few months of stock left.

Chinese control: How one customs office disrupted US ammunition transit

Even alternative routes are failing. In April, Chinese customs in Ningbo detained 55 tons of antimony in transit, which the United States Antimony Corporation was shipping from Australia to its plant in Mexico. After three months, the cargo was forced to return to Australia. Upon arrival, seals were found damaged, and the company is now investigating whether the antimony was contaminated or counterfeit.

Without new sources of mineral extraction, production will inevitably shrink, defense industry representatives warn.

The Russia bans gasoline exports measure will start on 29 July and, for the first time, apply to fuel producers as well. Interfax reports that the Kremlin announced the full restriction to stabilize the domestic fuel market amid peak summer demand. Liga notes that the ban could also be prolonged into September if the situation does not improve.

Russia bans gasoline exports as prices hit record highs

Interfax said the Russian government signed a decree on 28 July expanding the existing export restrictions on gasoline. Until now, the limits only applied to companies that do not produce fuel. Starting 29 July, the rule will include fuel producers, closing the export channel completely until 31 August 2025.

Previously, such export restrictions applied only to companies that do not produce gasoline. The Russian government stated that the goal is to protect internal supplies during high seasonal consumption and active agricultural work.

Liga explains that Deputy Prime Minister Aleksandr Novak, who oversees the energy sector, previously confirmed that a total ban had been under discussion for one to two months.

Record prices trigger the drastic move

Kommersant reported that the ban aims to “cool an overheated fuel market,” where prices have been rising sharply. Late last week, wholesale prices for A-95 gasoline on the Saint Petersburg exchange hit an all-time high, climbing for eight consecutive trading sessions.