Lockheed Martin (LMT) faces heightened supply chain risks following China's decision to restrict exports of 12 critical minerals. These materials are essential for diodes used in advanced directed-energy weapons, a primary development focus for the Pentagon.
The company previously identified rare-earth mineral availability as a core risk in its second-quarter reporting. This disruption could impact Lockheed’s ability to fulfill its substantial backlog and innovate on future defense technologies.
Lockheed recently secured a $35 billion multi-year contract for the THAAD missile defense system. No specific market reaction to the supply chain analysis has been observed.