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China-Japan-Koreas
Anduril Founder Urges Rapid Reindustrialization As U.S. Defense Supply Chain Remains Alarmingly Reliant On China
2025-10-12
[ZERO] China's latest decision to expand rare earth export controls, adding holmium, erbium, thulium, europium, and ytterbium to the restricted list just days ago, serves as yet another wake-up call for the Trump administration and Washignton as a whole. The U.S. remains dangerously dependent on China, the world's largest producer of rare earths, for these critical minerals that are essential inputs into the manufacturing of drones, humanoid robots, EVs, and advanced weaponry.

Anduril Industries founder Palmer Luckey sat down with Bloomberg on Friday to discuss how America's defense supply chains are dangerously reliant on China. He said the U.S. must urgently "reindustrialize" and rebuild its capacity to produce rare earths, semiconductors, and advanced computing hardware domestically if it wants to survive the 2030s.

"I mean, the reality is that our interests are relatively divergent at this point," Luckey said, referencing President Trump's late tariff threats (read here) against Being. "We need to make our own chips, our own computers, our own products downstream. China has a lot of leverage right now, and that makes it very hard to negotiate. They do have a lot of leverage right now, and so it's very hard to make deals with them. I think it's actually healthy for the US-China relationship for it not to be so dependent on China right now."

Luckey noted that Anduril, one of the fastest-growing defense technology startups in the U.S, has been heavily sanctioned by China, forcing it to eliminate all supply chain exposure in China.
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