The Pentagon has ordered 30,000 one-way attack drones and plans to scale production beyond 300,000 units by early 2027 as part of a broader push to strengthen U.S. autonomous warfare capabilities.

Mountain Horse Solutions, a Global Ordnance company, along with partners AG3 Labs and Draganfly, has been invited to compete in two mission areas using separate drone platforms designed for long-range strike operations and close-quarters urban combat.

The effort comes amid reports of a Pentagon ban on the use of China-origin rare earth magnet materials in U.S. military platforms starting in January 2027. Nearly all modern drones rely on rare earth magnets, and industry estimates suggest China produces about 98% of the global supply.

Pentagon estimates show that roughly 80,000 components across 1,900 U.S. weapons systems depend on Chinese-sourced rare earth materials, including drone motors, missile guidance systems and aircraft components. Experts warn it could take years for the U.S. to build a fully independent supply chain.

The Financial Times reported that defense companies are urging Washington to delay  prohibition on using Chinese samarium-cobalt and neodymium-iron-boron magnets in War Department contracts. 

The Pentagon has already started working to secure alternative supply chains. Until last year, the United States had only one major rare earth mine in operation, Mountain Pass in California, operated by MP Materials. In July 2025, the Pentagon took a $400 million equity stake in the company, becoming its largest shareholder.

In July, U.S.-based Ramaco Resources opened the Brook Mine in Wyoming, the first new rare earths mine in more than 70 years, though it has yet to begin production. Additional projects are also under development in Montana, Wyoming and Nebraska.

The Trump administration has also pursued overseas partnerships, including facilitating the acquisition of Brazilian producer Serra Verde by startup USA Rare Earth, in which the U.S. government took a 10 percent stake in January.