Defense companies are reportedly urging the Trump Administration to delay an impending deadline that forbids them from procuring rare earth magnets from China for U.S. military contracts.

The firms are requesting more time to adhere to the ban on Chinese samarium cobalt magnets and neodymium iron boron magnets. The ban, set to become effective from January 1, 2027, has been in the pipeline for years, reported the Financial Times on Monday.

These magnets are essential components in products ranging from electric vehicles and smartphones to fighter jets and advanced weapons systems. China dominates global production and has strengthened its control further by restricting access to these critical materials.

Under rules introduced by Congress in 2018 during President Donald Trump's first term, defense contractors will be barred from supplying the U.S. military with magnets, tungsten, and tantalum sourced from China. The restrictions also apply if any part of the materials' production process takes place in China, North Korea, Russia, or Iran.

Magnet production also takes place outside China, including in countries such as Germany, South Korea, and the United States.

Pentagon did not immediately respond to MarketDash's request for comments.

US Pushes To Cut China Reliance

This development comes in the wake of the U.S. Government Accountability Office warning last year that over 200,000 Defense Department suppliers contribute to advanced weapons systems and other military equipment, but officials have limited visibility into where many of those goods are manufactured. The agency said efforts to assess supply-chain risks remain fragmented and narrow in scope.

Meanwhile, the Trump administration has undertaken various initiatives aimed at reducing dependence on China for critical minerals. In February, Trump launched a $12 billion critical mineral stockpile, named Project Vault, a public-private partnership, to protect U.S. tech firms, automakers and other manufacturers from supply shock and reduce dependence on Chinese rare earth and minerals.

In April, U.S. trade representative Jamieson Greer proposed that allies pay a premium on minerals sourced from a proposed group of reliable trading partners, including Europe, to break China's dominance.

Earlier this month, Trump renewed his push for stricter enforcement of U.S. government purchasing rules, calling for federal agencies to prioritize American-made products and sharply reduce reliance on foreign goods.