Defence
Critical minerals, policy, and the energy transition
Critical Minerals and Defence Technologies
Critical minerals are essential in modern defence technologies, enhancing the performance, durability, and efficiency of surveillance, targeting, navigation, and weapon systems. Rare earth elements enable advanced radar, sonar, laser guidance, communication, and propulsion technologies, ensuring superior precision, stability, and resilience in combat environments. From radar and sonar systems to precision-guided munitions, high-powered magnets, and night vision optics, these minerals contribute to high-performance electronics, sensors, and control mechanisms across land, air, sea, and space. Their role in electromagnetic systems, laser weaponry, and military-grade electrical equipment makes them indispensable for national security and technological superiority. Securing a stable supply chain for these strategic materials is crucial for maintaining defence capabilities, driving innovation, and ensuring long-term military readiness in an evolving global landscape.
Geopolitical competition
The geopolitics of critical minerals is increasingly shaping global security, supply chains, and military capabilities. The Ukraine war has intensified geopolitical tensions, with Russia’s control over key raw materials affecting supply chains, while the USA and its allies work to secure alternative sources and reduce dependency on adversarial nations. Meanwhile, China’s dominance in rare earth production and refining presents a growing strategic challenge. With China controlling over 60% of global rare earth supply and over 85% of processing capacity, the threat of export restrictions or supply chain manipulation has become a critical concern for Western defence industries.
With critical mineral production concentrated in a few key regions, the USA and its allies are actively pursuing domestic production, supply diversification, and stockpiling to mitigate supply chain vulnerabilities and economic coercion. As access to these resources becomes increasingly weaponised in geopolitical competition, securing a stable and resilient supply chain is critical for sustaining defence capabilities, ensuring technological superiority, and maintaining long-term military readiness in an evolving strategic landscape.
Critical Minerals in defence sector applications
Critical Minerals for radar and sonar equipment for surveillance and navigation
Rare earth elements play a vital role in advanced defence applications, including sonar transducers, radar systems, enhanced gamma-ray radiation detection devices, and multi-purpose integrated chemical agent alarms, where they amplify signals and enhance resolution for superior performance. Each of these elements contributes unique and critical functionalities, strengthening surveillance, navigation, and threat detection capabilities. Given their strategic significance, ensuring a secure and stable supply chain for these minerals is a top priority for national security interests worldwide.
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Yttrium is widely used in radar, sonar, and infrared detection systems due to its role in Yttrium Iron Garnet (YIG) filters, which allow for precise radar frequency tuning, improving the resolution and sensitivity of surveillance and targeting systems. Yttrium is integral to high-performance radar systems such as the AN/SPY-6 Air and Missile Defense Radar, used on U.S. Navy destroyers, enhancing tracking of airborne and maritime threats. Additionally, yttrium-stabilised ceramics are found in jet engines and missile casings, such as those in Lockheed Martin's F-35 Lightning II, where they provide heat resistance and structural integrity in extreme combat conditions.
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Neodymium is an essential rare earth element in high-powered Neodymium-Iron-Boron (NdFeB) magnets, widely used in radar, sonar, and electronic warfare systems. These magnets generate powerful magnetic fields, enhancing submarine detection systems such as the SQQ-89 Undersea Warfare System, which improves tracking and engagement of underwater threats. Neodymium is also a key component in missile guidance and propulsion systems, such as the Tomahawk cruise missile, enabling precise and rapid manoeuvrability. Additionally, neodymium-based magnets are used in secure military communication systems, including the Joint Tactical Radio System (JTRS), ensuring reliable, interference-resistant transmission in combat environments.
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Samarium is a key component of Samarium-Cobalt (SmCo) magnets, valued for their high magnetic strength, resistance to demagnetisation, and exceptional thermal stability (-55°C to 300°C). These properties make them indispensable in radar, sonar, missile guidance, and electronic warfare systems.In radar and sonar applications, SmCo magnets are essential for signal generation and amplification, playing a critical role in navigation, threat detection, and target tracking. They are used in:
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AN/MPQ-65 Radar (Patriot Missile Air Defense System) for air and missile threat tracking.
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AN/APG-79 & AN/APG-81 AESA Radars (F/A-18 Super Hornet, F-15EX) for airborne fire control and targeting.
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AN/TPS-80 & AN/TPQ-53 ground-based radars for surveillance and counter-fire detection.
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SmCo magnets are also crucial in missile guidance systems, such as the AIM-120 AMRAAM (Advanced Medium-Range Air-to-Air Missile), where they provide stable and precise flight control. Their ability to withstand extreme temperatures makes them essential in electronic warfare technologies, including the EA-18G Growler’s jamming systems, which disrupt enemy radar and communications.For sonar applications, samarium-based components enhance anti-submarine warfare (ASW) and underwater threat detection:
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AN/SQS-53C Hull-Mounted Sonar (Arleigh Burke-class Destroyers) for ASW and torpedo detection.
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CAPTAS-4 Towed Array Sonar (Type 23 Frigates, FREMM Ships) for deep-water passive/active ASW.
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AN/AQS-22 Airborne Low-Frequency Sonar (MH-60R Seahawk) for dipping sonar in submarine localisation.
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Emerging applications include hypersonic threat detection, where SmCo magnets in dual-polarization radars (e.g., the Long-Range Discrimination Radar, LRDR) aid in tracking Mach 10+ glide vehicles that skim through the atmosphere, unlike traditional ballistic reentry vehicles (Mach 5+), which simply fall toward their target. Additionally, SmCo magnets are being integrated into Autonomous Underwater Vehicles (AUVs), where miniaturized magnetostrictive transducers enable compact synthetic aperture sonar (SAS) systems, enhancing underwater surveillance.
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Gadolinium is a crucial element in defence applications, particularly in sonar transducers and radiation detection systems. It has an exceptionally high neutron absorption cross-section, making it valuable for shielding in nuclear-powered submarines and other radiation-sensitive military assets. Additionally, gadolinium is used in enhanced gamma-ray detection devices, improving the ability to detect and track nuclear threats. Its magnetic and thermal properties also contribute to advanced imaging technologies, enhancing surveillance and reconnaissance capabilities.
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Lutetium plays a significant role in gamma-ray radiation detection devices, particularly in scintillator materials, which enable highly sensitive detection of nuclear and radiological materials. This makes it valuable for military counterproliferation efforts and systems such as the IdentiFINDER R440, used in radiation threat identification and monitoring. However, lutetium-doped scintillators are not typically used in electro-optical/infrared (EO/IR) targeting systems like the Sniper Advanced Targeting Pod (ATP), which relies on laser tracking and infrared sensors rather than gamma-ray detection. Additionally, lutetium is a key component in chemical agent detection alarms, such as the M4 JCAD (Joint Chemical Agent Detector), helping military forces identify hazardous substances in conflict zones.
Communication and display devices such as lasers, monitors and avionics
Rare earth elements are essential in communication and display devices, including lasers, monitors, and avionics, where they enhance performance, efficiency, and durability. These elements contribute to high-resolution displays, advanced optical systems, and robust communication technologies, which are integral to military and aerospace applications. Their strategic importance makes securing a stable supply chain crucial for national defence and technological superiority.
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Yttrium is a key element in lasers, optical systems, and display technologies, contributing to high-performance avionics and targeting systems. It is used in Yttrium Aluminium Garnet (YAG) lasers, which are widely deployed in military, industrial, and medical applications. Additionally, yttrium is found in phosphors for high-definition displays, enhancing the colour accuracy and brightness of monitors and cockpit instrumentation. Its role in ceramic components for aircraft and spacecraft also improves durability and heat resistance in extreme conditions. Additionally, its use in yttrium-based phosphors improves military display systems, such as targeting optics and vehicle HUDs (head-up displays), allowing for better situational awareness in combat.
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Praseodymium is an important rare earth element in display and optical technologies, particularly in aviation head-up displays (HUDs) and augmented reality systems. It is used in Praseodymium-doped glass to create high-quality optical lenses and laser components, ensuring enhanced visibility and accuracy in combat and reconnaissance missions. Praseodymium also plays a role in colour enhancement for display screens, improving contrast and brightness in military-grade monitors.
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Neodymium is widely used in laser technology, particularly in Neodymium-doped Yttrium Aluminium Garnet (Nd:YAG) lasers, which are critical for targeting, range-finding, and laser-guided weaponry. Nd:YAG lasers provide high-energy, precise beams, making them ideal for military and industrial applications. Neodymium is also essential in display screens and avionics, contributing to high-efficiency lighting and enhanced optical performance.
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Erbium is a key component in fibre optic communication systems, essential for secure military communications and high-speed data transfer. It is used in erbium-doped fibre amplifiers (EDFAs), which boost signals in long-distance fibre optic cables, ensuring clear and reliable communication over vast distances. Erbium is also used in solid-state lasers, particularly in infrared and medical applications, where it provides precise and controlled laser output.
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Terbium is essential for advanced display technologies due to its role in green phosphors, which are used in LEDs, LCD screens, and night-vision devices. It enhances image clarity and brightness, making it invaluable for high-performance military displays and cockpit avionics. Terbium is also used in terfenol-D, a magnetostrictive material employed in sonar and acoustic devices, as well as in precision actuators for aerospace systems.
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Dysprosium plays a critical role in high-performance magnets used in military communication systems and avionics. It enhances the thermal stability and durability of Neodymium-Iron-Boron (NdFeB) magnets, ensuring they remain effective in high-temperature environments such as aircraft and space systems. Dysprosium is also used in laser systems for targeting, guidance, and defence applications, where its unique optical properties improve precision and reliability.
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Europium is crucial for high-resolution display technologies, including military-grade monitors, avionics displays, and night-vision systems. It is used in phosphors to produce red and blue colours in LED and LCD screens, enhancing image clarity and colour accuracy. Europium’s role in X-ray and security screening equipment is also vital, as it improves the sensitivity and resolution of imaging systems used in military and aerospace applications.
Critical Minerals for mounting systems in armed vehicles and tanks
Rare earth elements play a crucial role in the mounting systems of armed vehicles and tanks, providing strength, durability, and precision in stabilisation mechanisms. These minerals contribute to shock absorption, vibration resistance, and enhanced manoeuvrability, ensuring that military vehicles can operate efficiently in harsh combat environments. Their strategic importance makes them essential for modern armoured vehicle design and defence systems.
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Yttrium plays a crucial role in the structural integrity, durability, and heat resistance of mounting systems in armed vehicles and tanks. It is widely used in yttrium-stabilised ceramics and high-strength alloys, which enhance the shock resistance and mechanical strength of vehicle components. These materials help mounting systems withstand extreme stress, vibrations, and temperature variations in high-impact combat environments. Yttrium is also an important component in heat-resistant coatings and wear-resistant materials, ensuring that key mechanical parts, including turret mounts and stabilisation joints, remain operational under intense battlefield conditions.
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Neodymium is widely used in Neodymium-Iron-Boron (NdFeB) magnets, which are essential for stabilisation and guidance systems in armoured vehicles and tanks. These powerful magnets provide precision control in turret rotation, weapon targeting, and suspension systems, ensuring smooth and rapid adjustments during combat. Neodymium’s role in shock-absorbing systems also enhances the durability of mounting structures, reducing mechanical wear and improving operational longevity.
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Europium is a vital component in high-performance phosphors and advanced alloys, contributing to the strength and resilience of military vehicle mounting systems. It enhances structural integrity and durability, making it useful in combat vehicle display systems and targeting optics. Europium’s presence in anti-reflective coatings also improves visibility in low-light and high-glare conditions, ensuring effective operation in battlefield environments.
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Terbium is a key element in magnetostrictive materials, particularly Terfenol-D, which is used in active vibration dampening and stabilisation systems in tanks and armed vehicles. By minimising vibrations and enhancing control, Terbium helps improve the accuracy of mounted weapons and targeting optics. It also plays a role in high-strength alloys and advanced sensors, increasing resilience and adaptability in modern military vehicle designs.
Critical Minerals for precision-guided missiles (cruise, anti-ship, surface-to-air)
Rare earth elements are essential in precision-guided missile systems, enhancing navigation, propulsion, targeting, and electronic warfare capabilities. These minerals contribute to high-performance magnets, sensors, and guidance systems, ensuring cruise, anti-ship, and surface-to-air missiles achieve high accuracy, manoeuvrability, and reliability in combat. Their strategic significance makes them indispensable for modern defence, providing superior targeting and resilience under extreme conditions. These materials also enhance structural durability and operational effectiveness, reinforcing propulsion, navigation, and targeting systems to maintain precision and efficiency across various missile types.
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Praseodymium is a key element in high-strength permanent magnets and advanced optical systems, enhancing the performance of targeting, tracking, and propulsion systems. It is particularly useful in missile laser designators and infrared sensors, which enhance target acquisition. Additionally, heat-resistant Praseodymium alloys reinforce structural components, ensuring the missile remains stable and intact under high-speed and high-temperature conditions.
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Neodymium is widely used in high-powered magnets, essential for missile propulsion, fin control mechanisms, and radar seekers. Neodymium-Iron-Boron (NdFeB) magnets provide strong, lightweight solutions for electromagnetic actuators and guidance components, enabling rapid course adjustments and precision targeting. Its role in homing and radar systems ensures accurate threat detection and interception.
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Samarium plays a vital role in Samarium-Cobalt (SmCo) magnets, which offer exceptional thermal stability and resistance to demagnetisation. These magnets are integral to radar seekers, gyroscopes, and inertial navigation systems, ensuring precision targeting and trajectory control even under extreme conditions. Samarium is also used in electronic warfare systems, where it enhances signal processing and electromagnetic shielding, protecting the missile from enemy countermeasures.
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Terbium in stabilisation systems, where it improves flight control surface accuracy using Terfenol-D, a magnetostrictive material. This ensures smooth and responsive missile manoeuvrability, particularly during high-speed flight adjustments. Additionally, Terbium contributes to high-performance optics and sensor systems, enhancing target detection and missile guidance accuracy.
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Dysprosium is used primarily in heat-resistant magnets that maintain effectiveness under extreme battlefield temperatures. It enhances Neodymium-Iron-Boron (NdFeB) magnets, which are crucial for propulsion systems, missile navigation, and actuator components. Additionally, Dysprosium contributes to stabilisation mechanisms that improve missile manoeuvrability and impact precision.
Critical Minerals for guidance systems for controlling missiles
Missile guidance systems focus on flight control, course correction, and stabilisation, ensuring a missile follows an exact trajectory to reach its target. The rare earth elements used in these systems contribute to gyroscopes, actuators, homing mechanisms, and stabilisation technologies, enhancing manoeuvrability, target tracking, and interception accuracy. These minerals are integral to high-performance magnets, sensors, and control systems, allowing missiles to maintain precise navigation, targeting, and interception capabilities. Their strategic significance makes them indispensable for modern missile defence, providing superior control, responsiveness, and resilience under extreme conditions.
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Praseodymium enhances high-strength magnets and optical components, improving the precision and reliability of missile targeting systems. It is used in laser designators and infrared tracking sensors, which assist in target acquisition and course correction. Praseodymium also contributes to heat-resistant alloys, reinforcing missile structures and guidance hardware, ensuring long-term durability and high-speed functionality.
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Neodymium is integral to missile guidance systems, electromagnetic actuators, and homing mechanisms. Neodymium-Iron-Boron (NdFeB) magnets are essential for precision flight control, rapid manoeuvrability, and improved targeting accuracy. Neodymium also supports radar and sensor systems, ensuring that missiles can track and engage enemy threats with maximum efficiency.
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Samarium is a key component in Samarium-Cobalt (SmCo) magnets, hich provide long-term magnetic stability and resistance to demagnetisation. Samarium is crucial for inertial navigation systems, gyroscopes, and radar seekers, which are responsible for maintaining accurate flight paths and precise target engagement. It also supports electronic warfare technologies, improving signal processing and shielding against enemy jamming.
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Terbium plays a critical role in stabilisation and control systems, improving missile actuators and vibration dampening mechanisms. By enabling precise course corrections, Terbium ensures smooth flight control and increased targeting accuracy. It also enhances optical sensors and tracking systems, allowing for more effective detection of moving targets.
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Dysprosium is vital in heat-resistant magnets that reinforce missile navigation and steering mechanisms. By stabilising Neodymium-Iron-Boron (NdFeB) magnets, Dysprosium ensures accurate trajectory maintenance under high temperatures and extreme operational conditions. This mineral also enhances stabilisation components, enabling missiles to remain on their intended course despite battlefield disruptions.
Critical Minerals for high-powered electrical equipment (containing high-powered magnets)
Rare earth elements are essential in high-powered electrical equipment, where they enable stronger, more efficient magnets for advanced defence, aerospace, and industrial applications. These minerals contribute to high-performance motors, generators, and electromagnetic systems, ensuring greater power output, durability, and thermal stability. Their strategic significance makes them indispensable for cutting-edge technologies, providing enhanced efficiency, reliability, and resilience in demanding environments.
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Yttrium enhances high-temperature superconductors and ceramic materials, improving electrical conductivity and thermal resistance in powerful motors, transformers, and advanced electronic components. It is also used in yttrium-stabilised ceramics, which reinforce high-performance electrical insulators and heat-resistant coatings.
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Praseodymium enhances high-strength permanent magnets and alloy conductivity, improving the efficiency of electrical motors, generators, and high-powered actuators. It is also used in aerospace-grade components, ensuring lightweight yet durable electrical systems in defence and aviation.
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Neodymium is fundamental to Neodymium-Iron-Boron (NdFeB) magnets, the strongest known permanent magnets. These are essential in defence radar systems, high-powered motors, wind turbines, and advanced electrical propulsion units, providing maximum power efficiency in compact designs.
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Samarium is a key component in Samarium-Cobalt (SmCo) magnets, known for their exceptional thermal stability and resistance to demagnetisation. These magnets are widely used in high-performance generators, military-grade electrical systems, and space applications, where they maintain consistent power output under extreme conditions.
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Terbium is crucial in magnetostrictive materials like Terfenol-D, which enhances electrical actuators, precision sensors, and sonar systems by converting electrical energy into precise mechanical movement. It also strengthens Neodymium-Iron-Boron (NdFeB) magnets, improving performance in motors, turbines, and energy-efficient power systems.
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Dysprosium plays a vital role in heat-resistant magnets, ensuring Neodymium-Iron-Boron (NdFeB) magnets maintain stability and efficiency at high temperatures. This makes it essential for electric vehicle motors, aircraft power systems, and military-grade electromagnetic equipment, where reliability under extreme conditions is critical.
Night vision goggles
Rare earth elements play a crucial role in night vision technology, enhancing image clarity, low-light sensitivity, and thermal resistance. These minerals contribute to high-performance optics, phosphors, and infrared imaging systems, ensuring superior visibility in low-light and combat environments. Their strategic significance makes them indispensable for military, surveillance, and security operations, providing enhanced situational awareness and operational effectiveness.
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Yttrium is essential in yttrium-based phosphors, which enhance image intensifier tubes in night vision goggles by improving light amplification and contrast. It also strengthens infrared optics and thermal imaging components, ensuring higher sensitivity and durability in extreme conditions. Additionally, yttrium-stabilised ceramics contribute to lightweight, impact-resistant goggle lenses, enhancing field performance and user comfort.
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Lanthanum is a key component in high-refractive-index glass, improving lens quality and optical clarity in night vision devices. It enhances light transmission and image sharpness, allowing for superior resolution and depth perception in low-light environments. Lanthanum-based glass is also used in infrared targeting and thermal imaging optics, ensuring precise detection and enhanced night-time visibility for military and security personnel.
Critical Minerals in Weapon Systems
Critical Minerals for powerful compact magnets for guidance and control in the electric motors
Rare earth elements are essential in high-performance compact magnets, which drive guidance and control systems in electric motors for advanced defence technologies. These minerals enable actuators, propulsion systems, and precision targeting mechanisms in weapons such as Tomahawk cruise missiles, smart bombs, Joint Attack Munitions, Joint Air-to-Ground actuators, and Predator unmanned aircraft. Their role in compact military-grade magnets ensures power, efficiency, and precision, delivering reliable performance, rapid response, and superior manoeuvrability in modern defence applications.
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Praseodymium strengthens Neodymium-Iron-Boron (NdFeB) magnets, improving their durability and efficiency in high-stress environments. It is also used in electric motor windings and control mechanisms, ensuring precise movement and rapid response in guided weapons and UAV systems. Additionally, Praseodymium-enhanced alloys contribute to structural stability in high-speed flight applications.
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Neodymium is the primary element in Neodymium-Iron-Boron (NdFeB) magnets, which provide exceptionally strong magnetic fields in a compact size. These magnets are essential in actuators, electric motor drives, and guidance control systems, ensuring precise manoeuvrability and high efficiency in missiles, UAVs, and smart munitions. Neodymium magnets also enhance power-to-weight ratios in propulsion systems, making them ideal for long-range and high-speed military applications.
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Samarium plays a vital role in Samarium-Cobalt (SmCo) magnets, known for their exceptional thermal stability and resistance to demagnetisation. These magnets are used in actuators, gyroscopes, and electric motor drives, ensuring consistent performance in extreme temperatures and high-vibration environments. Samarium magnets are particularly valuable in missiles and UAV guidance systems, where reliability under intense conditions is critical.
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Terbium is essential in magnetostrictive materials like Terfenol-D, which enhances electromagnetic actuators and vibration control systems. It is particularly useful in guidance mechanisms, targeting optics, and advanced UAV control surfaces, enabling precise adjustments and real-time flight corrections. Terbium also strengthens high-performance magnets used in compact electric motors, ensuring efficient power conversion and smooth operation in long-range missile and drone propulsion systems.
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Dysprosium enhances the thermal resistance and coercivity of Neodymium-Iron-Boron (NdFeB) magnets, allowing them to function efficiently in high-temperature environments. This is crucial for high-speed missile propulsion, advanced UAV motor systems, and precision-guided weapon actuators, where extreme heat and mechanical stress are common. Dysprosium also strengthens stabilisation mechanisms, ensuring accurate targeting and flight path control.
Critical Minerals for amplifying energy and resolution for targeting and weapons
Rare earth elements play a vital role in energy amplification and high-resolution targeting systems, enhancing laser weapons, counter-IED technologies, and photonic disruptors. These minerals contribute to laser targeting, precision-guided weaponry, and next-generation combat systems, ensuring greater accuracy, power efficiency, and operational effectiveness. Their strategic significance makes them indispensable for advanced military applications, including laser targeting, the Laser Avenger (counter-IEDs), SaberShot photonic disruptors, and Future Combat System (FCS) vehicles with laser weaponry.
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Yttrium is essential in Yttrium Aluminium Garnet (YAG) lasers, which provide high-powered, precise beams used in laser targeting, range-finding, and directed energy weapons. Yttrium also enhances infrared optics and thermal resistance, ensuring consistent performance in high-energy laser systems deployed in combat vehicles and counter-IED operations.
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Europium plays a crucial role in high-resolution phosphors and advanced imaging systems, improving targeting clarity and laser guidance precision. It enhances optical sensors and display technologies, ensuring greater accuracy in photonic disruptors and next-generation laser weapons. Europium-based materials also contribute to energy-efficient laser emission, supporting sustained high-intensity targeting operations.
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Terbium is used in Terfenol-D, a magnetostrictive material that enhances electromagnetic actuators and vibration control systems in laser weapon platforms. It is also essential in high-performance green phosphors, which improve visual targeting systems and optical resolution in laser-guided weaponry and photonic disruptors. Terbium strengthens energy transfer mechanisms, ensuring greater stability and efficiency in high-power laser applications.
Meet the Critical Minerals team
Trusted advice from a dedicated team of experts.

Henk de Hoop
Chief Executive Officer

Beresford Clarke
Managing Director: Technical & Research

Jamie Underwood
Principal Consultant

Ismet Soyocak
ESG & Critical Minerals Lead

Rj Coetzee
Senior Market Analyst: Battery Materials and Technologies

Dr Sandeep Kaler
Market Strategy Analyst

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