Secretary ties industrial capacity to national security, cites DoD equity stake in rare-earth processing

The U.S. secretary told reporters that restoring certain industrial capabilities and diversifying supply chains are issues of national security as well as jobs, and cited recent action by the Department of Defense to secure rare-earth processing capacity.

"We've lost our ability to make pharmaceuticals in The United States and become heavily dependent on foreign supply chains for the active ingredients," the secretary said, adding that core industrial capabilities "necessary for economic stability, but for national security" must be rebuilt. He also said the Department of Defense "has taken an equity stake in a company that will be able to process rare earths."

Why it matters: Concentration of key manufacturing or processing steps in a small number of countries can create strategic vulnerabilities. The secretary framed industrial policy as a mix of job creation and national-security priorities and pointed to DoD action on rare earths as an example of steps to diversify processing capacity.

Details from the session: The secretary gave examples, including shipbuilding and pharmaceuticals, and warned against overreliance on a single region for critical inputs. He said processing capacity (not just access to raw materials) is vital for technologies that depend on rare earths and other inputs.

Ending: The secretary said that securing and diversifying supply chains would involve domestic capacity increases and partnerships with allied nations; he did not provide timelines or funding totals.