US lawmakers have warned that China’s dominance over critical minerals could cripple American defence manufacturing in a crisis. The Pentagon defended controversial equity investments and price guarantees aimed at rebuilding domestic supply chains.

There is no exaggeration in saying that America’s reliance on China’s critical minerals represents one of our greatest strategic vulnerabilities, Senate Armed Services Committee Chairman Roger Wicker said at a Congressional hearing on rebuilding supply chains.

He cautioned that threats to cut exports of rare earths would have brought American defense manufacturing to its knees and deeply damaged the US economy.