From your garage to the Pentagon this part rules everything

On Monday, I showed you how rare-earth permanent magnets have the potential to disrupt critical systems we rely on every day, from cars and planes to medical scanners and data centers.

These magnets aren’t flashy, but they sit at the core of modern life, hidden deep inside the machines we trust to get us to work, to diagnose our illnesses, to keep our power flowing and our networks connected.

Without them, the everyday turns fragile fast.

I also pulled back the curtain on how dangerously dependent the West has become on China for this invisible lifeblood of industry.

According to the U.S. Geological Survey, China handles roughly 90% of global rare-earth processing, and the International Energy Agency estimates that about 94% of the highest-grade sintered magnets come out of China.

It means they hold leverage over the core systems that keep the global economy moving.

But that was only the first act of the story.

The vulnerability is plain enough.

The story that matters now is the scramble to rebuild and focus on who’s putting real projects in motion, where those projects are taking shape, and under what rules they’ll have to operate.

This isn’t a neat or orderly process.

Some companies will win early contracts and then fall short.

Others will fail before they can produce anything meaningful.

But a small number will get the timing right, bring capacity online, and cement themselves as essential suppliers.

That’s where I want to focus today.

And in the Premium Section, I’ll reveal one company I believe is best positioned to emerge from this scramble in command of a critical piece of the supply chain.

The Geography of Power

Magnets aren’t mined. They’re made.

And making them is messy.

The ores must be separated, refined, and combined into alloys under strict conditions.

Then they’re pressed, sintered, and shaped into components that meet precise tolerances.

It’s chemistry, metallurgy, and engineering all wrapped together.

For years, this entire value chain sat inside China.

The shift away from this dependency has been slow to start, but has accelerated in recent years.

After China briefly cut off rare-earth exports to Japan in 2010, countries began to talk about diversification, but progress was limited.

The real acceleration began around 2017, when President Trump signed an executive order declaring critical minerals a national priority. In 2019, the Pentagon was barred from sourcing Chinese magnets, and by 2020 a national emergency was declared to jump-start domestic projects.

Since then, momentum has built quickly.

The EU passed its Critical Raw Materials Act in 2023, Japan and Korea have funded joint ventures, and Australia has moved aggressively through companies like Lynas.

Billions are now being committed, and the International Energy Agency notes that even with this buildout, diversification away from China will remain limited well into the 2030s.

That timeline is important, because it shows how we’ve just entered the decisive phase of this shift.

Investors today are catching it at the moment when policy is converging with industrial buildout. It’s a window when the right names can benefit disproportionately.

After the OPEC oil embargo in the 1970s, U.S. oil majors that invested in new fields and technology saw their market caps multiply several times over in the following decade.

In Japan, companies like Toyota leaned into fuel efficiency after the shock, helping propel them to global dominance in autos.

In 2010, when China briefly cut off rare-earth exports to Japan, shares of Lynas in Australia rose more than tenfold in just two years as investors realized its strategic value after it began building the only large-scale rare-earth processing plant outside China.

These moments came suddenly and rewarded those positioned early.

Today, we’re at a similar inflection point for these rare-earth magnets.

As you’ll see below, the structural response is already underway, making the present moment one of the most important for investors to pay attention.

This is where the story gets interesting and where the Premium pick comes in.

Federally Mandated Buildout

Here’s something you need to understand: this isn’t a free market anymore.

These rare-earth magnets aren’t like copper or nickel where supply, demand, and price dance freely.

They’ve been pulled into the realm of national security. That means procurement rules, strategic stockpiles, and funding mechanisms now dictate who survives and who doesn’t.

The policy structure kicked off by President Trump in 2017 remains in place today.

And once defense rules forbid a material from China, suppliers outside China instantly gain a captive market. It doesn’t matter if their costs are higher.

This is why the company I’ll reveal in the Premium Section has such a powerful setup.

It’s already positioned inside a policy framework that essentially guarantees demand.

Follow The Money

If you want to know where the money is going, don’t start with the producers. Start with the customers.

Defense contractors can’t wait. Every fighter jet, missile, submarine, and radar array depends on permanent magnets.

The U.S. Department of Defense has stated directly that without a secure supply of rare-earth magnets, production timelines in critical weapons systems would grind to a halt.

Automakers are in the same boat. EV adoption continues to climb, and every EV requires 2–5 kilograms of rare-earth permanent magnets. You can’t ship a car without them.

Tech and infrastructure companies depend on the same supply chains. A blackout in magnets is a blackout in their business.

Across all these buyers, one thing unites them: reliability now trumps cost.

They’re ready to pay for certainty. And that makes the small group of domestic producers disproportionately valuable.

The International Energy Agency projects that global demand for rare-earth magnets will more than double by 2035.

Yet domestic supply remains tiny.

Even with new projects, the IEA expects only marginal diversification away from China by the mid-2030s. That’s more than a decade of structural vulnerability baked into the system.

This means anyone who brings capacity online in the West enters a market that’s both captive and growing.

This is why I’m following one particular U.S. company so closely.

Its facilities are scheduled to come online within the next eighteen months.

It already holds agreements across aerospace, defense, automotive, and data centers.

It also controls access to heavy rare earths, such as dysprosium and terbium, which make magnets viable in high-temperature environments, exactly what EV motors and defense applications require.

The Big Picture

This story is far bigger than just magnets… even if they’re of the rare-earth variety.

It’s about how great-power competition reshapes markets.

In the 1970s, oil shocks forced the West to rethink energy security. Today, the magnet squeeze is forcing the West to rethink material security. The players who move early on both the policy and business side will define the landscape for decades.

That’s why I’m treating this theme as one of the most important to watch right now.

The stakes are structural and inescapable: energy security, national defense, technological progress, and economic resilience all intersect in this one supply chain.

When a single input touches everything from fighter jets to smartphones, from wind farms to hospital MRI machines, it stops being a niche story.

It becomes a backbone story. And that makes it a place where fortunes can shift quickly for those who pay attention.

And remember: this isn’t a distant future story.

The buildout is happening now.

The contracts are being signed now.

The first wave of facilities is under construction now.

In today’s Premium Section, I’m naming the company I believe stands to benefit the most from this buildout.

It’s scheduled to deliver capacity right as demand is surging, it’s sitting on heavy rare-earth resources, and it’s already secured agreements across critical industries.

Premium Subscribers get the full details, including the ticker, below, so keep reading. If you’re not a Premium Subscriber, you can easily upgrade below.

~ Double D

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