The Defense Angle: Why the Defense Sector Needs Rare Earths

The United States is looking to build up robust rare earth supply chains to compete with China, but it's crucial to understand why rare earths are so important. Not only are rare earth materials used in AI and electric vehicles, but they are employed in a wide variety of different aspects within the defense sector.

The Sprott Rare Earths Ex-China ETF (REXC) offer distinct exposure to ex-China rare earths companies, which can tap into the themes of commodities, ex-China, and defense spending, all within a single ticker.

However, some may be wondering — why exactly does the United States need these materials so badly? Well, rare earths offer a variety of different applications, be it for electric vehicles, artificial intelligence, semiconductors, and more. One area where they can be especially crucial is the defense sector.

Recently, the experts at Sprott released an infographic to help illustrate the role rare earths play amid defense sector mobilization.

Sprott’s infographic explained that rare earths are employed in a multitude of ways to power the F-35 fighter jet alone. Elements like neodymium, praseodymium, terbium, and yttrium are used in the jet’s electronic systems. Meanwhile, neodymium, praseodymium, samarium, dysprosium, and yttrium are needed for the jet’s propulsion as well. Also, Sprott notes that scandium is used in the construction of the jet’s airframe.