A new report prepared by the United States Department of Defense (DOD) for the U.S. Congress publicly reveals, for the first time, the agency’s concern about China’s near-monopoly on rare earth minerals. The Pentagon said it is “essential” to establish reliable, non-Chinese sources of these strategic materials. The report recommended that DOD, despite being a relatively small consumer of such materials compared to the clean-tech and refinery industries, should communicate to industry that defense products would receive higher priority than commercial products should there be a supply crunch. The report also recommends that DOD talk with domestic rare earth companies about the assistance they need, raising the possibility of invoking DOD’s special authorities for developing defense critical industries. The main U.S. producer of rare earths, Molycorp Inc., this week announced that it is exploring deposits of heavy rare earths in hopes of helping to meet global demand. A company such as Molycorp could get a boost from DOD, should it decide to invoke these special authorities, which include the ability to invest directly in a sector, and the right to enter into long-term purchase agreements. Another report recommendation said the DOD should develop risk mitigation strategies for the rarer heavier elements, a task that would likely involve the DOD getting a better grasp of its own needs.