Europe Losing Rare Earth Race to the US

By Staff, Agencies

Europe’s push for its largest rearmament effort since the Cold War is being undermined by a tightening supply of rare earth minerals vital for modern weapons systems.

A Bloomberg report warns that US companies are moving far more quickly — and with stronger coordination — to secure these materials, leaving European defense firms exposed to potential production disruptions within months.

Even after a year-long rare earths trade truce between Washington and Beijing, China continues to enforce strict export controls, including a full ban on sales to companies involved in weapons manufacturing.

This has increased the value of stockpiles outside China’s reach and intensified global competition — a race Europe is increasingly losing.

Traders describe a stark contrast in procurement speed. Tim Borgschulte, CFO of Berlin-based Noble Elements, said that selling a ton of terbium to a US buyer requires “three to four days,” while supplying the same amount to a European client takes “three to four weeks.” With shrinking global supply, this delay has become strategically damaging.

Rare earths are essential for sensors, precision motors, missile guidance technology, and propulsion systems used in frigates, fighter jets, and drones. A source at a European defense firm warned that the continent’s reserves could run out within months.

US defense companies, meanwhile, are securing materials further upstream. Jan Giese of Tradium GmbH said this strategy reduces transparency around transactions — a deliberate move to protect suppliers from future restrictions and guarantee uninterrupted access to critical components.