NATO Prioritizes Critical Metals for Strengthening Defense Supply Chains

NATO

NATO has unveiled a list of 12 critical raw materials deemed essential for the production of advanced defense systems and military equipment, underscoring the need for secure and resilient supply chains in the face of growing geopolitical tensions. This initiative is part of NATO’s broader strategy to safeguard its technological edge and ensure the operational readiness of its member nations.

Key Critical Metals for Defense Applications

The metals identified by NATO include aluminium, beryllium, cobalt, gallium, germanium, graphite, lithium, manganese, platinum, rare earth elements, titanium, and tungsten. These materials play a pivotal role in the development of military aircraft, missiles, tanks, and submarines, among other defense technologies. For example:

• Aluminium: Used in military aircraft and missiles for its lightweight and high-strength properties.

• Graphite: Integral to the production of tanks and corvettes, known for its thermal stability and strength.

• Cobalt: Essential for creating superalloys used in jet engines and submarines to withstand extreme temperatures.

NATO's secretary-general Mark Rutte emphasized the need to ramp up defense production and spending during a recent address in Brussels, calling it a “top priority” amid escalating security challenges.

Building Resilient Supply Chains: NATO's Strategic Focus

NATO's roadmap for securing critical materials encompasses five strategic lines of action, including:

1. Strategic Stockpiling: Ensuring reserves of key materials to mitigate supply disruptions.
2. Recycling: Harnessing recycled materials to reduce dependency on new mining operations.
3. Substitution: Researching alternative materials to replace scarce or geopolitically sensitive metals.

This comprehensive approach reflects NATO’s commitment to reducing vulnerabilities in defense-critical supply chains. Geopolitical tensions, particularly surrounding rare earth elements and other critical metals, have heightened the complexity of defense manufacturing. For instance, trade disputes involving key suppliers like China and Russia have underscored the need for diversified sourcing and secure logistics.

Geopolitical Implications and Defense Strategy

The move aligns with broader global concerns about critical materials. Several NATO member states rely heavily on imports for materials like rare earth elements, predominantly sourced from China, which controls over 60% of global rare earth production. NATO’s strategy highlights the importance of mitigating this dependency through alliances, domestic production, and innovative technologies.

The roadmap also acknowledges the role of emerging economies in supplying materials like lithium and cobalt, critical for both defense applications and the burgeoning electric vehicle (EV) market. Collaborations with these nations may be essential in ensuring a steady supply of critical metals.

NATO Defense Spending Boost Strengthens Demand Outlook for Critical Minerals

NATO Defense

NATO defense spending rose sharply in 2025 as alliance members invested more than $1.4 trillion in defense capabilities. The increase signals a stronger long-term demand outlook for weapons systems, military infrastructure, aerospace platforms, and the critical minerals used across defense supply chains.

NATO defense spending among non-US members climbed to $574 billion, up from $480 billion in 2024. Luxembourg, Belgium, and Slovenia recorded the largest year-on-year increases in real terms, showing how smaller European members are also accelerating military investment.

NATO defense spending reached a symbolic milestone in 2025, with all member countries meeting the 2% of GDP defense spending guideline for the first time. The target was first agreed at the alliance’s 2014 Wales summit and has become a central measure of burden-sharing inside NATO.

European Defense Investment Moves Into a Higher Spending Cycle

European governments are increasing defense budgets under sustained geopolitical pressure and stronger US demands for burden-sharing. Luxembourg nearly doubled its spending, while Belgium and Slovenia raised expenditure by more than 58% and 53%, respectively.

US defense spending still remained the largest in absolute terms at $838 billion. However, it fell by 1.4% from the previous year, reinforcing the pressure on European allies to take greater responsibility for regional defense capacity.

The alliance also agreed to a new 5% target at its summit in the Netherlands last June. The framework includes 3.5% of GDP for core military spending such as weapons and personnel, and 1.5% for defense-related infrastructure.

Critical Minerals Become More Strategic for Military Supply Chains

Higher NATO defense spending will increase demand for rare earths and other critical minerals used in advanced military systems. Defense applications rely on materials such as germanium, tungsten, titanium, rare earth magnets, nickel alloys, specialty steels, and high-performance electronics materials.

Rare earths support sensors, precision-guided systems, electric motors, radar systems, and advanced defense electronics. Germanium is important for infrared optics and semiconductors, while tungsten is used in high-density and heat-resistant military applications. Titanium remains essential for aerospace structures, engines, armor systems, and high-performance components.

This creates a direct link between defense budgets and mineral security. As NATO members scale weapons production and military infrastructure, governments will need stronger supply chains for mining, refining, recycling, and advanced materials manufacturing.

The Metalnomist Commentary

NATO’s spending surge turns defense procurement into a critical minerals issue. The next strategic bottleneck may not be budget approval, but access to the rare earths, germanium, tungsten, titanium, and specialty materials needed to convert spending into real military capacity.

UK Unveils Critical Raw Material Recovery Plan for Defence Sector

Team Defence Information

MoD Targets CRM Recycling in Defence Supply Chain

The UK Ministry of Defence (MoD) has unveiled a comprehensive framework to recover critical raw materials (CRMs) from end-of-life military equipment, aiming to secure strategic resources and strengthen national supply chain resilience. Developed with trade association Team Defence Information, the plan embeds circular economy principles into procurement, maintenance, and disposal processes across the defence sector. This marks a significant departure from past practices, where most military equipment was discarded without extracting valuable materials.

Defence spending is set to rise, with Prime Minister Keir Starmer pledging an increase to 2.5% of GDP by 2027 from 2.3% in 2024. This growth will drive demand for specialty metals such as rare earth elements, tungsten, and cobalt — all of which face potential supply disruptions due to geopolitical tensions. The framework addresses these risks by prioritising domestic recovery and processing, reducing dependence on imports from politically sensitive regions.

Expanding Domestic Processing and Recycling Capacity

The new strategy identifies vulnerabilities within the UK's critical minerals supply chain, mapping gaps in domestic recovery and refining capabilities. It recommends building vertically integrated recycling operations capable of handling everything from dismantling retired military vehicles to processing complex alloys used in advanced defence systems. By leveraging its mature electronic waste recycling infrastructure, the UK can extend recovery efforts beyond precious metals such as gold, silver, and platinum group metals to include less commonly recycled elements essential for defence technologies.

However, achieving this goal will require substantial investment. The framework calls for stronger financial incentives, such as tax relief and targeted subsidies, to encourage both public and private sector participation. It also suggests that the MoD could directly fund projects aligned with its operational needs, enabling rapid scaling of pilot programmes. Collaboration with research institutions and industry will be key to developing cost-effective recovery methods for metals embedded in complex military hardware.

Strategic Benefits for National Security

Strengthening domestic CRM recovery is not just an environmental initiative but also a matter of national security. A reliable domestic supply of critical metals can shield the defence sector from price volatility, trade restrictions, and supply chain shocks. This is especially important as global competition for critical minerals intensifies, driven by the energy transition and the rapid growth of clean technologies.

The UK’s mature recycling infrastructure, combined with targeted investment in processing technologies, positions the country to become a leader in defence-related CRM recovery. If successfully implemented, the framework could serve as a model for other NATO members seeking to enhance their strategic resource independence while meeting sustainability targets.

The Metalnomist Commentary

The UK’s CRM recovery framework reflects a strategic convergence of defence policy and resource security. By integrating circular economy practices into military logistics, the country can reduce reliance on geopolitically sensitive imports and strengthen its industrial base. The key challenge will be balancing speed of implementation with cost efficiency, ensuring that recovery operations are both technically viable and commercially sustainable.

Collins Aerospace expands Polish landing gear site

Collins Aerospace

Collins Aerospace expands Polish landing gear site to meet rising build rates and deepen European supply resilience. The Tajecina, Poland facility will gain 4,000m² of floorspace, with construction already under way and slated to finish by February 2026. Therefore, Collins Aerospace expands Polish landing gear site to increase systems throughput across main, nose, and wing assemblies and support OEM and MRO demand. Meanwhile, the company did not disclose unit capacity or the site’s previous footprint, but the scale and timeline signal multi-program support. However, the expansion’s near-term impact will hinge on workforce ramp, capital tooling, and supplier readiness.

Titanium-intensive content will rise with capacity

Collins Aerospace expands Polish landing gear site to process more high-strength titanium alloys used in beams and structural parts. As a result, grades such as Ti-5Al-5Mo-5V-3Cr and Ti-10V-2Fe-3Al will see increased pull through forging, machining, and finishing value chains. Therefore, billet, forgings, and plate procurement will need tight coordination with melt shops and service centers. Moreover, greater titanium usage implies elevated requirements for heat treatment, non-destructive testing, and shot peen capacity, reinforcing quality-system investments.

Europe’s aero supply chain gains depth and optionality

Collins Aerospace expands Polish landing gear site as Airbus and Boeing stabilize production and defense programs stay firm. Consequently, the Tajecina footprint strengthens EU and NATO supply optionality for landing gear and spares. Furthermore, a larger Collins presence can catalyze local cluster growth in Poland, attracting machining SMEs and special processors. However, execution risks remain, including skilled-labor availability, long titanium lead times, and potential forging bottlenecks. Therefore, strategic offtakes and dual-sourcing across mills and forgers will be essential to maintain schedule adherence.

The Metalnomist Commentary

This expansion aligns with multi-year aero recovery and defense tailwinds, positioning Collins to buffer program variability. Watch titanium feedstock contracts, special-process capacity, and NDT throughput as leading indicators of how quickly Tajecina converts floorspace into shipped landing gear.

US Sanctions on Russia Set for a “Pickup” Under Trump Administration

Trump - Putin

White House Signals New Measures on US Sanctions on Russia

The US sanctions on Russia are set to intensify, according to the White House. Treasury secretary Scott Bessent said the administration will unveil a “substantial pickup” in measures soon. The announcement could come after market close today or tomorrow morning. The timing aligns with President Trump’s planned meeting with NATO secretary general Mark Rutte. The administration frames US sanctions on Russia as part of a broader pressure campaign.

US policy has diverged from recent EU and UK escalations. However, officials suggest Washington prefers tariffs to traditional sanctions tools. As a result, the only energy-related move so far is a 25% tariff on imports from India. Officials argue tariffs can pressure Moscow’s oil flows indirectly. Nevertheless, this path keeps US sanctions on Russia distinct from allied approaches.

Tariff Preference Complicates Allied Coordination

Senior officials have repeatedly emphasized tariffs over sanctions. Therefore, Bessent urged the EU to consider tariffs on buyers of Russian crude. The call specifically mentioned large importers, especially China. Meanwhile, alignment gaps with Europe could reduce policy impact. Consistent transatlantic execution typically strengthens enforcement outcomes.

Trump also highlighted outreach to India on crude imports. On 15 October, he said Prime Minister Modi promised to halt purchases. However, Indian refiners reported no instruction to cut imports. This creates uncertainty about near-term flows and compliance. Market participants therefore await details of any new US sanctions on Russia.

Market Watch: Energy Trade and Compliance Risks

The new phase of US sanctions on Russia may target logistics and finance. Consequently, traders and refiners face rising compliance and pricing risks. Any measures that tighten oil trade could widen differentials. Additionally, insurers and shippers may reassess risk exposure. Therefore, immediate clarity on scope and timelines will matter. Companies should prepare contingency plans and documentation reviews.

The Metalnomist Commentary

The administration’s tariff-first stance signals unconventional pressure mechanics. Yet sanctions efficacy depends on coordination and enforceability. Watch for concrete measures, carve-outs, and timelines that determine real market impact.

Aluminium on UK critical minerals list reshapes Britain’s strategy

Alfed(UK)

Aluminium on UK critical minerals list marks a major policy shift for Britain. The UK government will classify aluminium as both a critical and a growth material. This move recognises aluminium’s central role in economic resilience and low carbon manufacturing. Therefore aluminium on UK critical minerals list signals that supply security now sits alongside climate and industrial goals.

Why aluminium on UK critical minerals list matters for industry

Aluminium’s inclusion in the UK Critical Minerals Strategy strengthens its position across automotive, construction and energy transition value chains. The metal underpins everything from electric vehicles and lightweight structures to power grid upgrades and packaging. As a result, policy makers now treat aluminium supply disruption as a systemic economic risk.

This recognition should support new investment in recycling, low carbon smelting and domestic processing capacity. However, investors will still demand clarity on planning rules, power prices and long term demand signals. Aluminium on UK critical minerals list can unlock funding only if the broader policy framework stays predictable and supportive.

The UK also gains strategic alignment with allies that have already elevated aluminium to critical status. Nato’s classification of aluminium as a defence critical raw material underscores its role in aircraft, missiles and armoured systems. Consequently, the UK must manage aluminium supply with both industrial competitiveness and defence readiness in mind.

Defence demand and the UK Aluminium Alliance response

Defence and aerospace demand give additional weight to aluminium on UK critical minerals list. Lightweight yet strong alloys are essential for modern airframes, space systems and advanced weapons platforms. Therefore, secure access to primary metal and high performance alloys becomes a core national security issue.

Industry group Alfed is positioning the sector to respond to this new priority status. Its UK Aluminium Alliance platform aims to channel investment, shape regulation and accelerate policy reform. Meanwhile, the Alliance can help coordinate messages on energy costs, trade defence and sustainability metrics.

For UK producers and processors, the combination of critical and growth designation creates both opportunity and pressure. Companies will need to prove that their projects enhance resilience, cut emissions and support regional jobs. In return, they can argue for targeted support on infrastructure, innovation and skills development.

The Metalnomist Commentary

Aluminium’s elevation inside the UK Critical Minerals Strategy confirms that base metals now sit at the heart of security policy. The challenge will be translating this label into coherent action on power pricing, recycling and strategic stockpiles. If the UK aligns industrial policy with this new status, aluminium could become a flagship test case for integrated climate and security planning.

Greenland resources face extraction hurdles despite renewed US interest

Greenland resources

Greenland resources face extraction hurdles even as Washington again spotlights the territory. Costs, climate, and logistics still block most commercial mining. As a result, Greenland resources face extraction hurdles for rare earths and other critical minerals.

Greenland resources face extraction hurdles as geopolitics heats up around security and supply chains. US leaders frame Greenland as strategically vital for Nato coverage. Meanwhile, European governments push back to defend Danish and Greenlandic sovereignty.

Greenland resources face extraction hurdles because geology and geography punish project economics. Harsh weather shortens operating windows and raises safety costs. Limited ports, roads, and power grids also inflate capital needs.

High costs and thin infrastructure limit near-term viability

Greenland mining requires heavy upfront spending before any revenue starts. Developers must build power, transport, and processing systems in remote terrain. Therefore, many deposits stay stranded without public financing or guaranteed offtake.

Rare earth projects also face complex metallurgy and strict permitting. Producers must separate mixed rare earths into saleable oxides. However, few buyers fund this chain without long-term certainty.

Tanbreez and Malmberg show where momentum concentrates

Tanbreez remains a headline rare earth project with expanding offtake coverage. Offtake deals can reduce demand risk and support bankability. Still, developers must prove consistent concentrate quality and scalable operations.

Malmberg targets molybdenum and magnesium with long-life permitting in place. Supply agreements can anchor revenue expectations for stainless and specialty steel users. Meanwhile, European interest signals strategic demand for defense-grade inputs.

The Metalnomist Commentary

Greenland will not become a fast fix for Western critical minerals shortages. Governments may need to underwrite infrastructure, not just mines. The winners will pair financing with disciplined execution and realistic timelines.

Melrose Industries Reports 26% Engine Revenue Growth on Aftermarket Strength in 2024

Melrose Industries

Defence spending and additive fabrication boost GKN Aerospace unit despite civil production headwinds.

Melrose Industries, the UK-based parent of GKN Aerospace, reported a 26% rise in engine division revenue to £1.46 billion ($1.88 billion) in 2024. The company’s engine aftermarket business grew by 32%, helping push operating profit up 40% to £422 million.

Aftermarket demand surged due to increased defence contracts and maintenance-related services, as commercial aircraft deliveries remained constrained. This dynamic benefited Melrose’s service business while placing pressure on original equipment (OE) volumes.

Defence Demand and OEM Partnerships Support Outlook

Melrose highlighted strong defence sector momentum, which offset civil market weakness. While structures revenue rose 3% to £2.01 billion, it declined 5% when adjusted for exited business. Civil aircraft destocking and sluggish OE build rates—notably at Boeing and Airbus—continued to limit growth.

The company's revenue mix remains 72% civil to 28% defence, but with EU and NATO nations ramping military budgets, defence is set to play a larger role in 2025 and beyond.

Melrose also made strategic strides in additive fabrication, delivering its first fully 3D-printed demonstrator case for CFM International’s RISE engine programme. It has secured long-term contracts with Pratt & Whitney and GE Aerospace, positioning itself as a key player in next-generation aerospace components.

2025 Outlook: Growth to Moderate Amid Supply Chain Constraints

Melrose projects 2025 revenue between £3.55–3.7 billion, but cautioned that supply chain bottlenecks may slow growth, especially in the structures business. However, continued aftermarket expansion and innovation in fabrication techniques offer upside for the engine division.

With strong defence tailwinds, additive manufacturing adoption, and established OEM ties, Melrose is well-positioned for strategic growth across core aerospace segments.

EU Defence Spending to Drive Demand for Specialty Metals

Metals

Rising military investments in Europe are set to reshape demand for critical metals like titanium, niobium, and cobalt.

Defence Sector Targets Strategic Metals

European defence spending is surging under the EU’s Readiness 2030 plan, aiming to boost military capabilities. The plan, also known as ReArm Europe, will mobilise up to €800bn ($865bn), targeting air defence and military mobility. As a result, this initiative will significantly increase demand for key metals used in advanced defence systems. NATO’s critical materials list includes gallium, tungsten, aluminium, graphite, and cobalt, all vital to weapons, drones, and aircraft. Meanwhile, demand for germanium and columbite is already rising due to increased procurement for infrared and missile applications.

Supply Chain Constraints and Geopolitical Risks Loom

However, meeting demand will require navigating complex global supply chains and market disruptions. China’s export restrictions on metals like antimony and bismuth have sent prices soaring, causing volatility across EU markets. At the same time, titanium supply gaps highlight Europe’s industrial weaknesses in strategic stockpiling and processing capacity. Despite these hurdles, market sentiment is shifting, and banks are more open to financing metals tied to defence priorities. Germany is exploring ways to adapt automotive manufacturing for defence needs, showcasing flexibility amid rising urgency.

Overreliance and Strategic Vulnerability

Europe remains dependent on military imports from the US, Israel, and South Korea despite its funding increase. Titanium stands out as a weak link, with Europe lacking sponge production and relying on external sources for critical parts. As defence needs rise, nations are seeking ways to reduce dependence and reinforce self-sufficiency in essential metal supply chains.

The Metalnomist Commentary

Europe's shift toward a militarised industrial policy places specialty metals at the core of security. For suppliers and investors, understanding these structural shifts is vital. Strategic metal supply is no longer just economic—it’s geopolitical.

Defense & Security 2025 turns Bangkok into Asia’s defense crossroads

Defense & Security 2025

Defense & Security 2025 opens in Bangkok with record scale and deep strategic signaling. Defense & Security 2025 hosts 580 companies, 28 national pavilions, and 26,000 visitors. Defense & Security 2025 runs 10–13 November at IMPACT under Thailand’s defense ministry.

China’s strategic push shapes the exhibition’s competitive landscape. Thailand has fielded Chinese VT-4 tanks, VN-1 IFVs, drones, and QBZ-195T rifles. Thailand has in recent years purchased more Chinese arms by value than US systems. Therefore, the halls highlight Chinese offerings across air, land, and maritime domains. Meanwhile, invited delegations exceed 350 senior officials from 35 countries.

Scale and content reinforce the show’s Asia-Pacific weight. Exhibits span missiles, tanks, UAVs, ships, satellites, and secure comms. Exhibitors also show electronic warfare, cyber, and counter-terror systems. As a result, the event functions as a tri-service marketplace with policy dialogue. Twenty seminars and conferences convene industry and government experts.

Defense & Security 2025, China Sector

China’s export expansion meets Thailand’s modernization

China’s export pattern concentrates on Asia and Oceania buyers. Asia-Oceania take 77% of Chinese arms exports, with Africa at 14%. Pakistan accounts for 63% of Chinese exports, followed by Bangladesh and Thailand. Consequently, regional procurement pipelines increasingly feature Chinese platforms and components.

Thailand’s modernization plan advances across multiple suppliers. The cabinet approved a phased purchase of 12 Gripen E/F jets over a decade. The estimated cost is 60 billion baht for the Gripen program. Thailand’s 2024 defense budget totals 198.3 billion baht, up 2% year on year. Therefore, procurement mixes US Strykers, Chinese VN-1s, and Israeli UAVs.

ASEAN’s rearmament cycle accelerates in parallel. Indonesia’s defense budget reached $13.2 billion in 2023. Singapore’s spending reached $13.4 billion in 2023 after a 10% rise. Singapore is acquiring eight F-35B fighters to expand airpower. Vietnam is upgrading naval capabilities to protect maritime claims.

Defense & Security 2025

Global spending pledges and exporter dynamics reframe supply chains

NATO members set a higher ambition at the June 2025 summit. Members committed to invest 5% of GDP in defense. This marks a major uplift from the earlier 2% benchmark. As a result, delivery slots, components, and workforce will tighten globally.

Exporter shares define competitive pressures through 2020–24. The United States held 43% of global arms exports. France and Russia followed in second and third positions. China accounted for 5.9% and ranked fourth. Therefore, Chinese vendors face strong US and European competition in premium segments.

Defense & Security 2025 serves more than a sales floor. Organizers prioritize invited government buyers and curated agendas. Discussions focus on autonomy, AI ISR, resilient logistics, and cyber. Exhibitors pitch lifecycle packages with training and local sustainment. Co-production, MRO, and data rights feature in many deal rooms.

The Metalnomist Commentary 

Bangkok’s show captures a decisive shift toward diversified sourcing and localization. Expect tougher offset terms, co-development, and data-centric sustainment as ASEAN hedges suppliers. Financing creativity will separate winners from followers in the next procurement wave.

EU Defence Spending to Boost PGM Demand Despite Supply Constraints

EU Defence

Increased Military Investment Drives Strategic Metal Consumption

European defence spending is set to increase platinum group metal (PGM) demand across aerospace and military sectors. The EU's ReArm Europe plan commits €800 billion toward modernizing and strengthening defence capabilities, directly supporting specialty metal consumption. However, tangible increases in PGM demand are expected only by Q2 2026 as procurement cycles mature.

PGMs are essential for advanced defence systems due to their heat resistance and electronic performance. Platinum, rhodium, and iridium are used in missile nose cones, aircraft engines, and protective coatings. Meanwhile, palladium and ruthenium play critical roles in capacitors, chip resistors, and optical technologies.

Prices Take Backseat in Military Applications

Unlike commercial sectors, the defence industry continues to use high-cost PGMs due to performance requirements. For example, palladium remains dominant in military-grade capacitors despite cheaper nickel substitutes in consumer electronics. This divergence underscores how strategic needs override price sensitivity in defence procurement.

Supply Limitations Raise Strategic Concerns

PGM supply remains tight, with platinum entering a third consecutive deficit year in 2025. South African producers, responsible for the bulk of PGM output, are cutting production amid low prices and high operating costs. Nato’s recent designation of platinum as critical reflects rising geopolitical concern over concentrated supply chains.

Nevertheless, the industry retains a robust PGM recycling infrastructure that softens the impact of mine-side disruptions. Experts note that economic factors—not physical scarcity—are currently the main constraint on supply expansion.

The Metalnomist Commentary

As Europe ramps up defence investment, PGMs will become increasingly indispensable to national security and technology platforms. Price will remain a secondary factor for defence buyers, but supply-side volatility could create procurement friction. Watch for policy interventions that enhance recycling and diversify sourcing to stabilize the PGM market over time.