Five Eyes Alliance Overly Reliant on China for Rare Earth Elements, Report Warns

A new report casts doubt on the preparedness of the Five Eyes intelligence partnership, including the United States, to respond to foreign threats due to excessive dependence on China for rare earth elements (REEs), essential components in military and technology industries.

The Five Eyes alliance, comprising the United States, the United Kingdom, Canada, Australia, and New Zealand, plays a pivotal role in global intelligence and security operations. However, a report titled "Decreasing Rare Earths Dependency: How the Five Eyes Alliance can Minimize Rare Earths Trading Risk with China" raises concerns about the alliance's over-reliance on China for REEs.

The report highlights the critical role of REEs in producing military equipment and the vulnerability of Western military supply chains to China's potential decision to restrict exports. China currently holds a dominant position in the REEs industry, accounting for 60% of global production and almost 90% of processing.

Five Eyes Alliance Overly Reliant on China for Rare Earth Elements, Report Warns

This dependence poses a significant risk, as China has a history of using its market dominance for political purposes. For instance, in 2023, China threatened to limit exports of REEs crucial for the manufacturing of F-35 fighter jets.

Helena Ivanov, associate fellow at the Henry Jackson Society and author of the report, told Fox News Digital, "The Five Eyes countries are dangerously exposed to China when it comes to rare earth minerals, as they are all over-reliant on China for this critical resource."

Five Eyes Alliance Overly Reliant on China for Rare Earth Elements, Report Warns

The report urges Five Eyes countries to diversify their REEs supply chains away from China. This diversification can involve ramping up domestic production and strengthening partnerships with countries like Canada and Australia.

The vulnerabilities highlighted in the report echo the risks faced by Europe's reliance on Russian gas prior to Moscow's invasion of Ukraine. Without reducing dependency on China, the Five Eyes alliance may encounter a similar situation, jeopardizing their collective security and economic well-being.

Five Eyes Alliance Overly Reliant on China for Rare Earth Elements, Report Warns

The report urges collaboration within the Five Eyes Alliance, emphasizing the importance of joint efforts to reduce China's influence in the REEs market. By diversifying supply chains, investing in domestic production, and strengthening partnerships, the alliance can enhance its preparedness to respond to foreign threats.

The United States has recognized its vulnerability and has taken steps to address it. The Department of Defense and other agencies are implementing programs to strengthen the domestic supply chain of REEs. Additionally, the Department of Energy has announced investments in projects aimed at lowering costs and reducing environmental impacts associated with REEs extraction.

Five Eyes Alliance Overly Reliant on China for Rare Earth Elements, Report Warns

The report concludes that addressing the over-reliance on China for REEs is crucial for maintaining the stability and security of the Five Eyes alliance. By working together, the alliance can reduce China's influence in the market and enhance its ability to withstand foreign threats.