Critical Minerals and Energy Intelligence

The missile race is becoming a race for critical minerals

Sixteen days of the Iran war left coalition forces needing an estimated 4,000kg of tungsten just to replacing the expended gun ammunition — but US mines produced none of the metal in 2025 and, instead, China accounted for 79% of global tungsten mine production.

And it’s not just tungsten.

In a RUSI analysis of the Iran war, researchers estimated coalition forces expended more than 11,000 munitions in the first 16 days. And replenishing these arsenals will require secure access to a wide range critical minerals — from antimony to copper, rare earths to titanium — that make advanced weapon systems possible.

US critical munitions use in Iran War - The Oregon Group

And the West’s exposure, especially dependence on Chinese supply, is substantial. 

“If the war in Ukraine was a wake-up call for the Western defence industrial base, the first 16 days of the Iran conflict are a fire alarm signalling a crisis of endurance” — Over 11,000 munitions in 16 Days of the Iran War: ‘Command of the Reload’ Governs Endurance

How vital is each critical mineral to U.S. defense and how much leverage does China - The Oregon Group
Material risk matrix from War on the Rocks, August 2025. The authors’ scores show relative risks, not measured percentages.

The critical mineral risks behind the weaponry

In their August 2025 War on the Rocks analysis, Macdonald Amoah, Morgan Bazilian, Clarkson Kamurai and Jahara Matisek, ranks across two broad tiers:

  • first-tier risks are gallium, the battery-chemicals chain, tungsten, and graphite
  • second tier includes titanium sponge, germanium, antimony, indium, magnesium, and molybdenum, with nitrocellulose and finish-line capacity in specialty steels and aerospace aluminum (requiring near-term hedges because surge capacity is slow to add)

The assessment combines concentration of supply, military importance, limited substitutes and the time needed to add capacity. For example, refining, separation and specialised finishing are frequent constraints if a mine whose output still passes through a vulnerable refining process that leaves part of the exposure intact.

Share of refined material production by country in 2025 compared with the top producers share in 2023 - The Oregon Group

Across ammunition, missiles and supporting military systems, six critical mineral priorities stand out:

For example, tungsten and gallium illustrate America’s (and the West’s) vulnerability because they underpin both weapons and the systems that support them: tungsten is used in armaments and the cutting tools needed to manufacture military equipment, while gallium enables semiconductors used in advanced military radars. Yet, China accounted for approx 79% of global tungsten mine production and 99% of primary low-purity gallium production in 2025, exposing these capabilities to highly concentrated mineral supply chains.

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An arsenal built on imported minerals

US vulnerability extends across the critical-mineral supply chain. 

A July 2026 Government Accountability Office assessment reported that the US was fully import-dependent for 12 critical minerals and relied on imports for at least half its requirements for another 34.

US defence minerals reliance on foreign supply - The Oregon Group
USGS Mineral Commodity Summaries 2026. Total import reliance is for 2025; China’s share of imports covers 2021–24. The two measures have different denominators

Despite recent government funding, the scale of the challenge for the US remains significant, for example:

The Pentagon is increasingly explicit about the stakes.

“Securing resilient domestic and allied supply chains is a fundamental warfighting requirement,” said Mike Cadenazzi, the Pentagon’s assistant secretary responsible for industrial base policy, in an August 2026 announcement committing US$750 million to secure rare-earth supply from Brazil’s Serra Verde.

Acting Secretary of the Army Honorable Adam Telle recently announced the Army’s first‑ever “Manufacturing Rodeo”, describing it as a competitive stress test for both the Army’s organic industrial base and the nation’s broader manufacturing network.

Meanwhile, the mineral demands of military rearmament are becoming more pressing. Global military expenditure reached a record US$2.887 trillion in 2025, with European spending rising 14% in real terms. US expenditure fell that year, but the wider rearmament cycle continued. Larger budgets create purchasing power; they cannot immediately create additional mineral supply.

Military spending is rising as the number of wars around the world increases - The Oregon Group

Tungsten shows why securing supply takes more than money

The four tonnes of tungsten used in the weapoons fired in the 11 days of the Iran War is a relatively small quantity in the wider tungsten market (the US imported an estimated 11,700 tonnes of tungsten in 2025) — but securing dependable supplies outside China increasingly means committing years ahead.

In July 2026, US processor Global Tungsten & Powders extended its agreement for approximately 90% of Sangdong’s first-phase production to 21 years; buyers seeking additional material face a market where substantial volumes of new supply already have a customer.

And China has tightened access to its own production after, in February 2025, Beijing introduced export licensing requirements for selected tungsten products. S&P Global’s August 2026 report found that prices more than quadrupled between January-July in 2026.

(See our recent article Tungsten price shock signals deeper supply crisis)

Price of tungsten APT 88.5 in warehouse Rotterdam - The Oregon Group

US sourcing requirements are tightening too: from January 2027, defence procurement restrictions on covered tungsten products extend back to the mining and feedstock stages, generally excluding Chinese-origin material even when processed elsewhere, subject to specified exceptions.

Turning defence demand into secure mineral supply

The clearest evidence of the strategic urgency is Washington’s growing intervention in mining finance — particularly domestic projects — including:

Conclusion

Before America can reload its missile stockpiles, it must first reload its critical-mineral supply chains — potentially making the mining companies capable of delivering those materials at scale strategic pillars of the US defence industrial base.

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about the author

Picture of Anthony Milewski

Anthony Milewski

Anthony Milewski has spent his entire career in the capital markets, including as company CEO, board director, advisor, founder and investor, with a focus on the energy transition and commodities.

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