G7 Moves to Secure NdFeB Magnet Supply for Military and Clean Energy Sectors
The G7 is moving beyond broad critical mineral commitments to explicitly tie rare earth magnet supply to defense capability. Permanent magnets made from neodymium, praseodymium, and dysprosium are essential for aircraft actuators, missile guidance, naval propulsion, and satellite systems—making them a strategic choke point in military readiness. The same magnets are also indispensable for EV drivetrains and wind turbines, creating a high-stakes overlap between defense and clean energy supply chains.
Key Points:
G7 Critical Minerals Action Plan outlines targeted financing for NdPr separation, alloying, and magnet manufacturing in FEOC-compliant jurisdictions.
https://www.g7hiroshima.go.jp/en/topics/2025-08-12-critical-minerals-joint-statement/U.S. Department of Defense signed new agreements with domestic and allied suppliers to secure NdFeB magnets for defense platforms.
https://www.defense.gov/News/Contracts/Korea Zinc evaluating rare earth separation as part of its multi-metal refining expansion, positioning to serve both commercial and defense markets.
https://www.koreanzinc.co.kr/eng/USA Rare Earth progressing mine-to-magnet plans in Texas, with production aimed at both EV and defense contracts.
https://www.usarareearth.com/news/
Why It Matters:
Defense Readiness Risk – China’s dominance in rare earth magnet production leaves allied defense manufacturing vulnerable to supply disruption.
Dual-Use Supply Pressure – Military and clean energy sectors will increasingly compete for the same high-grade magnets.
Strategic Partner Leverage – Companies with proven metallurgical capacity can accelerate timelines for FEOC-compliant magnet output.
Watchlist Companies:
Korea Zinc – Potential midstream hub for rare earth alloying integrated with other battery metal refining.
https://www.koreanzinc.co.kr/eng/USA Rare Earth – Mine-to-magnet project in Texas targeting multi-sector demand.
https://www.usarareearth.com/news/
Critical Minerals Spotlight:
Neodymium (Nd) & Praseodymium (Pr) – Primary components of high-strength permanent magnets.
Dysprosium (Dy) – Improves magnet performance under high heat; critical for aerospace and naval systems.
Action Points:
Watch for G7-linked funding announcements tied specifically to defense-grade magnet projects.
Track DoD procurement contracts for NdFeB supply as a leading indicator of domestic capacity buildout.
Monitor Korea Zinc’s formal entry into rare earth separation for implications on allied midstream integration.
Evaluate potential bottlenecks where defense demand could displace or delay EV/wind turbine projects.
https://444Critical.com
This update is for informational purposes only and is not financial or legal advice. Information is believed accurate but not guaranteed.