Rare earth elements (REE), specifically rare earth magnets, are indispensable to the defense industry. The United States must confront a threat to its lead in the technological innovation of military applications that use permanent magnets, particularly as China, which produces 97 percent of REEs and controls 37 percent of known reserves, reduces its exports. The National Defense Stockpile should be reconfigured to provide a buffer supply of REEs. The Government should offer incentives to resurgent domestic REE mining and refining firms and must also curtail further sale and export of such U.S. companies to China. Simultaneously, the Government should continue funding research into permanent magnets using alternative materials that could balance the demand for REEs