Critical Materials and the Defence Sector
Welcome to the latest edition of our LinkedIn Newsletter.
In this edition, our experts look at the defence sector and how developments are set to drive demand for a wide range of critical materials.
Make sure to subscribe to this Newsletter to ensure you receive every edition.
Each month, our Newsletter will share in-depth analysis and market insights for critical material and energy transition supply chains.
If you'd like to speak to our global team of experts about our detailed market intelligence and bespoke consulting services across more than 30 critical material supply chains, from mine to market, please get in touch here.
During periods where economic growth is expected to slow, there are industries that are viewed as less susceptible to decelerating activity.
One such industry is defence.
A combination of events in recent years have culminated in a growing focus on the defence industry, but combined with the deglobalisation trend accelerated by trade tensions, securing local capabilities - across both advanced technology and manufacturing - has become a critical focus for policymakers around the world.
Project Blue's latest insights report - which is freely available - highlights a number of critical material markets covered by Project Blue that are integral to developing, producing and maintaining equipment and systems for the defence sector.
Project Blue data shows that several key defence sector applications are dependent on a wide range of critical materials.
NATO has had a common definition of defence expenditures since the early 1950s, agreed upon by all NATO Allies.
The minimum spend that has been agreed since 2006 is 2% of national GDP.
While President Trump has suggested a 5% of GDP target, this is unlikely to be met in the short term given existing fiscal budget challenges.
However, if NATO ex-USA countries raise their spending targets to 3.5% to match the USA, this would add nearly US$500 billion to annual defence spending by NATO members.
In the first four months of 2025, China announced export restrictions, including technology transfer restrictions, on key critical materials including molybdenum, tungsten, and rare earths.
End-uses for these materials include satellites, armoured steel for tanks and naval vessels, bulletproof vehicles, armour and a myriad of advanced technology applications.
Trade tensions, geopolitics and the approach that China takes regarding critical material exports will have a significant impact on market dynamics for critical materials required by the defence sector.
Request the full report
Our report is free to receive and it examines how critical materials are used in defence applications and what potential supply chain risks could lie ahead.
You can request the full report by providing your details here.
Project Blue's global team of experts provide detailed market intelligence and bespoke consulting services across more than 30 critical material supply chains.
Learn more at www.projectblue.com and speak to our team about how we can support your business with strategic decisions and investment planning.
And join Project Blue and senior decision-makers across these supply chains at our upcoming events around the world - more information is available on our website: