How rare earths power the F-35 and U.S. supply plans

The United States is expanding domestic rare earth supply chains to reduce reliance on Chinese production. Sprott, an asset manager, published an infographic that maps where specific rare earth elements appear in the Lockheed Martin F-35 fighter jet.

The graphic assigns elements to subsystems: neodymium and praseodymium appear in both electronics and propulsion; terbium and yttrium appear in electronic systems; samarium and dysprosium are linked to propulsion components; and scandium is listed for the airframe. Sprott presented the F-35 as an illustrative example rather than a full inventory of every element used in the jet.

U.S. officials and industry leaders have cited China’s dominant position in mining, refining and separation as a reason to build more onshore processing capacity. Rare earth refining and magnet production remain concentrated in a small number of countries.

Rare earth elements are used outside the defense sector as well. They are parts of electric vehicle motors, data-center magnets that support artificial intelligence workloads and components for advanced electronics. Demand from those industries overlaps with military requirements.

Supply chains for rare earths are complex. Mining produces ore that contains many elements. Separating and refining those elements requires chemical processing and specialized facilities. Companies and governments are investing in processing plants, recycling programs and international partnerships to broaden sources of upstream materials.

Financial markets have shown increased interest in non-Chinese rare earth companies. The Sprott Rare Earths Ex-China ETF (REXC) holds firms outside China involved in mining, refining and producing rare earth materials. Fund documents identify potential volatility and advise reviewing the prospectus for risks and costs.

Analysts and officials say reconfiguring the global rare earth supply chain will take years and coordinated investment by governments and private firms. In the near term, companies that mine or process rare earths outside China and investment vehicles focused on those firms are receiving more attention from investors and defense suppliers tracking procurement and industrial policy developments.