The supply chain you don’t think about

[Goofyhoofy]

The Pentagon Has a Supply-Chain Problem

Since the start of the war in Ukraine, no weapon has been more effective against Russian forces than the Javelin anti-tank missile. Drawing on a supply of roughly 7,000 US-made Javelins, Ukraine’s fighters have destroyed at least 400 Russian tanks and hundreds more armored vehicles. The weapon’s potency has helped foil President Vladimir Putin’s plans to overrun the country. There’s just one problem: The US stockpile is now running out.

The war has already consumed as much as one-third of the US military’s inventory of Javelins. Within months, the Pentagon will be unable to deliver new ones without emptying out its own supply. The war has also consumed one-quarter of the US inventory of Stinger shoulder-fired anti-aircraft missiles; Raytheon, which makes the Stinger, says it could take up to a year to restart production.
https://www.bloomberg.com/opinion/articles/2022-06-07/the-pe…

It goes further than that: the chip shortage we’ve heard so much about in the auto industry is also affecting the Pentagon’s ability to procure certain advanced weapons. Since source suppliers have dried up during the pandemic, and some sole suppliers are now based overseas in countries which might not always prove friendly to US interests.

Additionally, as the article points out, the Pentagon has long favored big expensive showy projects over the meat-and-potatoes that goes along with equipping a military. Changing those attitudes would require a drastic change in the way the Pentagon works, so good luck with that.

[TheCrusader]

It goes further than that: the chip shortage we’ve heard so much about in the auto industry is also affecting the Pentagon’s ability to procure certain advanced weapons. Since source suppliers have dried up during the pandemic, and some sole suppliers are now based overseas in countries which might not always prove friendly to US interests.

In fact it is worse. The US is unable to replace any electronics used in weapon systems, as the US has no sovereign rare earths processing capability and is totally dependent on overseas sources

That’s why this is happening

14/6/22

Lynas Rare Earths Ltd (ASX: LYC, OTC:LYSDY) (Lynas) is pleased to announce that wholly owned subsidiary, Lynas USA LLC, has signed a follow-on contract for approximately US$120 million with the U.S. Department of Defense (DoD) to establish a first of its kind commercial Heavy Rare Earths (HRE) separation facility in the United States.

This mutually beneficial contract supports Lynas to establish an operating footprint in the United States, including the production of separated Heavy Rare Earth products to complement its Light Rare Earth product suite. As a result, U.S. industry will secure access to domestically produced Heavy Rare Earths which cannot be sourced today and which are essential to the development of a robust supply chain for future facing industries including electric vehicles, wind turbines and electronics.

…

Feedstock for the facility will be a mixed Rare Earths carbonate produced from material sourced at the Lynas mine in Mt Weld, Western Australia.

Australia is establishing itself as a trusted supplier to a number of countries like the US and UK to supply crucial resources.

The US is also reliant on Russia and China for titanium and titanium related products which is a crucial material used in the manufacture of jet engines, wing assemblies, steering wheels, hydraulic systems and of other parts.

Some fools may recall the titanium used in the SR-71 came from Russia.

In 2013 Boeing was forced to set up aircraft part manufacturing facilities in Russia to guarantee its supply of titanium.

Australia has the world’s largest titanium reserves

Amaero ASX:3DA wants to set it self up as he supply base for titanium alloy and titanium alloy powder for US industry

There are other Aussie companies involved with other raw materials with the same story.

Meanwhile China wants a military base in the Solomons.

[PhoolishPhilip]

It goes further than that: the chip shortage we’ve heard so much about in the auto industry is also affecting the Pentagon’s ability to procure certain advanced weapons. Since source suppliers have dried up during the pandemic, and some sole suppliers are now based overseas in countries which might not always prove friendly to US interests.

This is why I think Intel is such a good investment right now. They are making huge commitment of capital to becoming the domestic chip foundry at exactly the moment when domestic manufacturers and the federal government are realizing the strategic importance of chip manufacturing to the US economy and our national security. I think the 40 long wave of globalized assembly lines is coming to an end, and I expect domestic manufacturing of all sorts to be a big winner over the next 40-50 years.