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U.S. critical minerals are nearing a January 1, 2027, procurement deadline that expands defense sourcing restrictions across the supply chain for certain magnets, tantalum, and tungsten. Contractors and lower-tier suppliers face new tracing and qualification demands while domestic capacity remains limited. This report explains the rule, the supply gap, and the compliance work now required. Key Takeaways The January 1, 2027, rule reaches covered materials mined, refined, separated, melted, or produced in China, Iran, North Korea, or Russia. Covered materials include two rare earth magnet types, tantalum metals and alloys, tungsten metal powder, and tungsten heavy alloy. Reuters reported 2025 U.S. demand of about 48,000 metric tons for the most common rare earth magnet, compared with 300 metric tons from domestic sources. A July 20, 2026, executive order tightened waiver conditions and directed broader supply chain mapping. The deadline changes the depth of the restriction rather than creating a broad ban on every mineral or commercial product. Under the Defense Federal Acquisition Regulation Supplement, covered contractors may not deliver specified materials or end items containing them when prohibited production stages occurred in a covered country. Beginning January 1, the restriction reaches mining, refining, separation, melting, and production. For samarium-cobalt and
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