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Appropriations panel presses DOD on munitions, industrial base and critical minerals policy

3744926 · June 10, 2025

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Summary

Members asked Defense Department leaders how the department plans to rebuild munitions capacity, reduce reliance on adversary supply chains for critical minerals and support U.S. firms; DOD said it is prioritizing munitions, investing in domestic production and working with industry and allies.

Several members used the June 10 hearing to press Defense Department leaders on the state of the U.S. defense industrial base, including ammunition production, manufacturing modernization and critical minerals supply.

Rep. Marcy Kaptur cited reporting that the department paid an Australian firm more than an American company, Mountain Pass-based MP Materials, to develop rare-earth processing and asked whether subsidies should favor U.S. firms already investing domestically. Secretary Hegseth said the department is focused on sourcing critical minerals reliably in the U.S. or among allies and that the department will partner with domestic firms when appropriate.

Multiple members and DOD witnesses discussed munitions production, with Secretary Hegseth saying the department has made "historic investments in munitions" and is redirecting money to priority munitions for priority theaters. Witnesses described efforts to expand domestic production, invest in next-generation energetics and use programs such as DIU and the Office of Strategic Capital to bring commercial innovators into defense supply chains.

Members asked for account-level details on where funds are going to restore manufacturing capacity and domestic supply chains; DOD said it would provide written responses and welcomed congressional partnership on targeted investments.