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The United States is the world's preeminent military power due in large part to its technological superiority. This lead in innovative technology supporting national security also includes advances in new and "green" energy applications. A common ingredient enabling the production of many of these applications is a group of minerals known as rare earth elements (REEs). As the American military and industrial sectors continue their move toward increased reliance on miniaturized high-performance electronics and strive to adopt more energy-efficient technologies, there are concerns that the US may trade its reliance on Middle East oil for dependence on REEs from China. This paper will illustrate how REEs have become a deeply ingrained need throughout the American economy and, in particular, how rare-earth magnets are now indispensible to the defense industry. It will explore how the United States should react to a threat to its lead in the technological innovation of military applications using permanent magnets.