The strait of Hormuz blockade will strangle US defense industry
6 hours ago
- #mineral-shortage
- #supply-chain
- #defense-industry
- Closure of the Strait of Hormuz is causing severe disruptions in the US defense industrial base, affecting manufacturing and equipment repairs.
- Sulphur, a critical input for extracting minerals like copper and cobalt, faces a 'near total' disruption in seaborne trade, with prices spiking 25% since the war began and 165% year-on-year.
- These minerals are essential for manufacturing microprocessors, jet engines, and drone batteries, impacting the speed of production and scaling during wartime.
- USAF Lt. Col. Jahara Matisek warns of a 'cascading issue' where replacing destroyed weapons and equipment could cost double or more due to surging mineral demand.
- Sulphur is also crucial for making sulphuric acid, used in extracting copper and cobalt from low-grade ores, which are vital for US military equipment.
- The Modern War Institute highlights that replacing damaged radars and communication equipment will require thousands of kilograms of copper, stressing supply chains.
- Only 6% of US defense contractors have fully transparent supply chains, leading to military efforts being constrained by uncontrollable upstream conditions.
- Matisek criticizes the opacity of large defense contractors' supply chains, emphasizing the need for transparency in mineral sourcing for strategic planning.
- Sulphur is also key in producing explosives, with only two companies manufacturing high explosives, raising concerns about production capacity amid supply crunches.
- The report calls the situation a 'prelogistical crisis,' previously overlooked in military planning, now capping combat endurance due to industrial foundation shortages.