Empty Stockpiles: The US Military Must Rearm — A Golden Opportunity for Lynas Rare Earths, Antimony Resources, and Lockheed Martin

Lynas Rare Earths: The Quick Fix

Rebuilding stockpiles is likely to take years. And this requires many raw materials for which the US relies on supplies from China. The People's Republic holds an absolutely dominant position in many metals. The situation is particularly dire when it comes to rare earths. Here, the facts speak for themselves. According to the US Geological Survey, China's market share for the mining of these metals alone is approximately 60% to 70%. For particularly valuable heavy rare earths such as dysprosium and terbium, China's share of mining is as high as about 90%. At the next level—the processing of these metals—the country's dominance reaches 85% to 90%, and for heavy rare earths, up to 99%. Separating these 17 chemically very similar elements is extremely labour- and technology-intensive and does nothing to protect the environment. Last but not least, these metals must be further processed into permanent magnets. This end product is then used in the tech, automotive, and defence industries. China's market share stands at a whopping 94%.

There are only two Western producers of rare earths. Lynas Rare Earths has been the dominant player here for many years. The Australians have a deposit in their home country at Mt. Weld, though the rare earths are processed in Malaysia. Most recently, they have also succeeded in processing heavy rare earths. Since these heavy rare earths in particular are indispensable for many military applications, the US has invested heavily to establish supply chains independent of China. Lynas is likely to be a key component in this effort at present. This is also evident in the March quarter (Q3 of fiscal year 2026): Lynas more than doubled its revenue to AUD 265 million. Particularly notable, the average selling price for all products was AUD 84.60/kg, and prices for neodymium-praseodymium rose by 25% compared to the previous quarter. With cash and cash equivalents of AUD 1.07 billion, the company is in excellent financial shape. In the future, as a result of an agreement with Japan, it will even be able to sell 5,000 tons of NdPr per year at a minimum price of USD 110/kg. Letters of intent have already been signed with the US. As the largest Western producer, Lynas Rare Earths is likely benefiting the most from the current geopolitical situation. The stock had more than quadrupled since the beginning of 2024, but with the outbreak of war in the Gulf, it has largely been trading sideways. Furthermore, there will be no immediate competition, as the development and construction of mines takes many years.

Antimony Resources: For Western Supply Chains

Since mine construction takes so long and there are few projects involving critical metals, even relatively young companies with a deposit have a chance to benefit from the rebuilding of US military stockpiles. The focus is primarily on historic mines, where there is a greater likelihood of moving into production relatively quickly and of operating the mine economically. With Antimony Resources' Bald Hill, there is also an alternative in the antimony sector. The metal is virtually irreplaceable as an alloying element in lead bullets, as it improves hardness, strength, and dimensional stability. In many applications, 3 to 5% antimony is therefore added, which ensures greater precision and penetrating power of the ammunition. China holds the upper hand here with a global market share of more than 60%.

Antimony Resources' Bald Hill project could play a key role in this context. The historic Lake George Mine, formerly North America's only primary antimony producer, was located about 90km from the property. Bald Hill itself has been explored using modern exploration techniques since 2008. As a result, it is already known to host a high-grade stibnite (antimony sulfide) mineralization.

Antimony Resources is building on this information and utilizing historical databases. According to NI 43-101 data, the project boasts a substantial exploration target with an estimated 81,000 to 108,000 metric tons of contained antimony. By way of comparison: China produced approximately 60,000 tons of antimony in 2023. Antimony Resources CEO Jim Atkinson and his team have launched the exploration program. Drilling is expected to cover approximately 13,000 m within the main mineralization zone. An additional 6,000 m of drilling will be conducted in the newly discovered zones. The initial laboratory analysis results confirm these assumptions. According to the results, the first three drill holes show grades ranging from 8.1% to 13.9% antimony (Sb). Currently, three drilling rigs are in operation to test both the extensions of the main zone and the newly discovered zones.

Antimony Resources was also firmly on investors' radar throughout 2025 and 2026, although profit-taking set in from late March 2026 onward. From its high of CAD 1.60 on its home exchange in Toronto, the stock has lost nearly half its value. Since the beginning of this month, the shares have been trading sideways with high volatility. Those who believe in the geopolitical trends can take advantage of long-term opportunities here.

Lockheed Martin: The Defence Giant

The empty US military warehouses highlighted by Senator Mark Kelly are likely to bring new orders to the defence industry—regardless of whether a Democratic or Republican president is in office. The interceptor missiles explicitly mentioned are manufactured by Lockheed Martin. The company is now the undisputed number one in the United States in terms of pure defence sales. The Bethesda, Maryland-based company generates approximately USD 65-68 billion annually from defence technology alone. This accounts for about 90% of its total revenue. Interceptor missiles, along with F-15 and F-35 fighter jets, are part of the company's portfolio. Total revenue in 2025 was approximately USD 75 billion (+6%). Net income was USD 5 billion, down 27% from the previous year, due to delays in two major projects in Q2 (approximately USD 1.6 billion). As a result, the company managed to generate free cash flow that exceeded net income. This stood at approximately USD 6.9 billion, surpassing market expectations. The order backlog already amounted to USD 194 billion at the turn of the year and is expected to rise further as a result of the war.

Lockheed Martin's stock is currently in a very interesting position. From early December 2025 until the start of the war in late February, the stock rose by around 40%. However, the first missiles in the Gulf triggered a sell-off. Since its peak, the stock has corrected by nearly 30%. The stock is now also interesting from a dividend perspective. Lockheed Martin traditionally pays out around 40% of its profit quarterly. In 2025, this amounted to USD 13.35 per share. Extrapolating the Q1 dividends over the full year, total dividends of around USD 13.80 could be achievable in 2026. That would represent a dividend yield of approximately 2.6%.

The war in the Gulf has "bled dry" US military stockpiles. Australian company Lynas Rare Earths is also likely to benefit from this, as a Western firm capable of supplying the necessary rare earth elements. Antimony Resources, meanwhile, has an antimony mine under development at Bald Hill in Canada, which could help meet Western nations' long-term ammunition needs. As the country's largest defence contractor, Lockheed Martin is expected to benefit massively from the US military's demand in the coming years.