DFARS 252.225-7052: 2027 requirements and compliance checklist

DFARS 252.225-7052 decides whether a magnet, a tantalum part or a tungsten alloy can go into a delivery to the Department of Defense. For contracts awarded on or after January 1, 2027, or deliveries from that date under the MAY 2024 clause, the rule reaches back to the mine, the refinery and the separation plant, and EO 14415 narrows the waiver route on the same day. Teams that collect origin evidence per lot before then avoid waiting on a supplier's missing records.

What is DFARS 252.225-7052?

DFARS 252.225-7052 is the DoD contract clause that bars delivery of certain rare earth magnets, tantalum and tungsten when they were melted or produced in China, Russia, Iran or North Korea, along with end items made in those countries that contain them. It implements 10 U.S.C. 4872 and flows down to subcontractors that supply items containing those materials.

The clause goes into contracts above the simplified acquisition threshold, including commercial buys. DFARS 225.7018-5. Solicitations and contracts issued from July 1, 2026 use a revised clause, 252.225-7961 (JUN 2026) (DEVIATION 2026-O0041), which ties the upstream bar to award date and drops the MAY 2024 "entire supply chain from mining" wording. Class Deviation 2026-O0041, Revision 1. Older contracts usually carry 252.225-7052 (MAY 2024). The two versions word the 2027 change differently; record which version each contract carries.

Which rare earth magnets, tantalum and tungsten items does the DFARS clause cover?

The clause covers five materials. They are samarium-cobalt magnets, neodymium-iron-boron magnets, tantalum metals and alloys, tungsten metal powder, and tungsten heavy alloy, including any finished or semi-finished component that contains it. The restriction applies to these materials whether they arrive on their own or inside a component, assembly or end item.

Tungsten heavy alloy means a tungsten-based pseudo alloy that meets ASTM B777 or SAE-AMS-T-21014, or that holds at least 90 percent tungsten in a matrix such as nickel-iron and has a density of at least 16.5 g/cm³. The "covered countries" are North Korea, China, Russia and Iran. DFARS 252.225-7052(a).

Through December 31, 2026, the restriction starts at melting the magnet alloy, reducing or melting tantalum, and atomizing or reducing tungsten into powder, and it covers every later step. DFARS 252.225-7052(b)(2)–(5). Samarium-cobalt magnets also fall under the specialty metals rules, which are covered in DFARS specialty metals.

What changes on January 1, 2027?

For contracts awarded on or after January 1, 2027, the restriction also reaches covered material mined, refined or separated in a covered country. The MAY 2024 clause ties this to delivery date instead. The same date narrows the commercially available off-the-shelf (COTS) exception: an item 50 percent or more covered material by weight loses it.

The MAY 2024 clause bars delivery of covered material "mined, refined, separated, melted, or produced" in a covered country from that date, back to ore or feedstock, naming recycled material for samarium-cobalt magnets, tantalum and tungsten but not neodymium-iron-boron magnets. DFARS 252.225-7052(b)(1)(ii), (b)(2)–(5). Separation is the step that splits mixed rare earth concentrate into individual elements such as neodymium and samarium.

Section 848 of the FY2026 NDAA rewrote the amendment that takes effect January 1, 2027, so that from that date 10 U.S.C. 4872(a)(3) bars DoD from entering into a contract for covered material mined, refined or separated in a covered nation. Pub. L. 119-60, Section 848. 10 U.S.C. 4872, amendment note.

The 50 percent weight test moves from tungsten alone to all covered material. Any covered material mill product, such as bar, billet or plate not yet built into anything, also stops qualifying as COTS, where before only tantalum and tungsten heavy alloy mill products did. DFARS 225.7018-3(c)(1).

What 252.225-7052 covers before and after January 1, 2027

Copy linkDownload image

Matrix of covered materials against five production stages (mined, refined, separated, melted, produced) in two periods. Through December 31, 2026, only melting and production in China, Russia, Iran or North Korea are restricted for samarium-cobalt and neodymium-iron-boron magnets, tantalum, tungsten metal powder and tungsten heavy alloy. From January 1, 2027, mining, refining and separation are restricted too, for contracts awarded on or after that date. Extra rows show molybdenum and, from December 18, 2027, gallium and germanium, which the statute covers but the clause does not yet list.

Material	Period	Mined	Refined	Separated	Melted	Produced	Where the rule sits
Samarium-cobalt magnets	Through Dec 31, 2026	No	No	No	Yes	Yes	Clause
Samarium-cobalt magnets	From Jan 1, 2027	Yes*	Yes*	Yes*	Yes	Yes	Clause
Neodymium-iron-boron magnets	Through Dec 31, 2026	No	No	No	Yes	Yes	Clause
Neodymium-iron-boron magnets	From Jan 1, 2027	Yes*	Yes*	Yes*	Yes	Yes	Clause
Tantalum metals and alloys	Through Dec 31, 2026	No	No	No	Yes	Yes	Clause
Tantalum metals and alloys	From Jan 1, 2027	Yes*	Yes*	Yes*	Yes	Yes	Clause
Tungsten metal powder	Through Dec 31, 2026	No	No	No	Yes	Yes	Clause
Tungsten metal powder	From Jan 1, 2027	Yes*	Yes*	Yes*	Yes	Yes	Clause
Tungsten heavy alloy and components containing it	Through Dec 31, 2026	No	No	No	Yes	Yes	Clause
Tungsten heavy alloy and components containing it	From Jan 1, 2027	Yes*	Yes*	Yes*	Yes	Yes	Clause
Molybdenum	Dec 18, 2025 to Dec 31, 2026	No	No	No	Yes	Yes	Statute only, not yet in clause
Molybdenum	From Jan 1, 2027	Yes*	Yes*	Yes*	Yes	Yes	Statute only, not yet in clause
Gallium and germanium	From Dec 18, 2027	Yes*	Yes*	Yes*	Yes	Yes	Statute only, not yet in clause

Which exceptions still apply?

Several exceptions continue after January 1, 2027: buys at or below the simplified acquisition threshold, items bought and used outside the United States, most COTS end items, electronic devices unless the contract says otherwise, and recycled neodymium-iron-boron magnets milled and sintered in the United States. A nonavailability determination can also lift it. DFARS 225.7018-3 and 252.225-7052(c).

The electronic device exception may narrow, because EO 14415 Section 2(f) directs a review of how DoD applies it. EO 14415, Section 2(f). The head of the contracting activity can make a nonavailability determination for one contract, while a class determination needs USD(A&S) approval. DFARS 225.7018-4.

How do 10 U.S.C. 4872 waivers work after EO 14415?

From January 1, 2027, EO 14415 Section 2 tells DoD to stop issuing nonavailability waivers under 10 U.S.C. 4872(c)(1) unless the prime contractor or subcontractor submits a formal mitigation plan that DoD accepts. National security waivers under 4872(e) need the same accepted plan, or a request from the Secretary to the President's national security adviser.

The plan must identify the source of the non-compliant material and document efforts to buy compliant material, or show none was available. It must also describe steps to remove the material and set a strict timeline. A failure to qualify a domestic source does not count as nonavailability unless the contractor shows active, adequately funded and ongoing qualification work. EO 14415, Section 2(a)–(d). The statute already limits each 4872(c)(1) waiver to a specific end item and specific covered material for up to 36 months. 10 U.S.C. 4872(c)(1). The wider order is covered in EO 14415 explained.

Waiver routes under 10 U.S.C. 4872 before and after EO 14415

Copy linkDownload image

Flow showing how a non-compliant magnet, tantalum or tungsten item can still be delivered. First check whether an exception applies, such as the simplified acquisition threshold, COTS below the weight threshold, electronic devices or recycled magnets. If not, a nonavailability waiver or a national security waiver was available before January 1, 2027. From that date EO 14415 allows either only with a DoD-accepted mitigation plan with four elements, or for national security waivers a request to the national security adviser. Otherwise the item cannot be delivered.

1. 1

   Check exceptions: at or below the simplified acquisition threshold; bought and used outside the US; COTS below the weight threshold; electronic device; recycled NdFeB magnet milled and sintered in the US

   Before January 1, 2027

   No waiver needed if one applies

   From January 1, 2027

   No waiver needed if one applies; COTS threshold becomes 50% covered material by weight; electronic device exemption under review

   Source

   DFARS 225.7018-3; EO 14415 §2(f)

2. 2

   Nonavailability waiver under 4872(c)(1), made as a DFARS nonavailability determination (head of contracting activity for one contract, USD(A&S) for a class; one end item, one material, up to 36 months)

   Before January 1, 2027

   Available when compliant material cannot be procured as and when needed at a reasonable price

   From January 1, 2027

   Issued only with a mitigation plan that DoD accepts

   Source

   10 U.S.C. 4872(c)(1); DFARS 225.7018-4; EO 14415 §2(a)–(b)

3. 3

   National security waiver under 4872(e), including a 10 U.S.C. 4863(k) waiver applied under 4872(e)(3)

   Before January 1, 2027

   Available on a written determination stating quantity and period, provided to the congressional defense committees

   From January 1, 2027

   Only with an accepted mitigation plan, or after a request from the Secretary to the Assistant to the President for National Security Affairs

   Source

   10 U.S.C. 4872(e); EO 14415 §2(a)

4. 4

   Mitigation plan contents

   Before January 1, 2027

   Not required

   From January 1, 2027

   (i) Source of the non-compliant material; (ii) evidence of exhaustive efforts or non-availability; (iii) steps to remove it from the supply chain; (iv) strict projected timeline

   Source

   EO 14415 §2(b)

5. 5

   Domestic source qualification

   Before January 1, 2027

   No stated test

   From January 1, 2027

   Failure to qualify a domestic source is not non-availability unless efforts are active, adequately funded and ongoing

   Source

   EO 14415 §2(c)

6. 6

   Misleading plan or knowing failure to carry it out

   Before January 1, 2027

   Not addressed

   From January 1, 2027

   Contract remedies and possible referral to the Attorney General

   Source

   EO 14415 §2(d)

7. 7

   No exception and no waiver

   Before January 1, 2027

   Do not deliver the non-compliant item

   From January 1, 2027

   Do not deliver the non-compliant item

   Source

   DFARS 252.225-7052(b)

What does the statute cover that the clause does not yet?

10 U.S.C. 4872 now lists molybdenum, added by the FY2026 NDAA on December 18, 2025, with gallium and germanium joining on December 18, 2027. The MAY 2024 clause and the June 2026 deviation still list only the original five materials. The DAR Council is drafting a proposed rule under DFARS Case 2024-D014. Open DFARS Cases, 2024-D014.

The same law adds exceptions the clause also lacks. Recycled samarium-cobalt magnets qualify when milled and sintered in the United States. 10 U.S.C. 4872(c)(3)(C). Recycled tantalum, tungsten and molybdenum qualify when produced outside a covered nation, with melting and later processing in the United States or a qualifying country. 10 U.S.C. 4872(c)(3)(D). Pub. L. 119-60, Section 844. List molybdenum-bearing items before January 1, 2027, alongside your critical minerals exposure.

Does the clause flow down to subcontractors?

Yes, paragraph (d) requires the contractor to put the substance of the clause, including paragraph (d), into subcontracts and other instruments for items containing a covered material, including commercial products, unless an exception applies. The text may not change except to name the parties; the statute applies at every tier. DFARS 252.225-7052(d) and 10 U.S.C. 4872(b).

Match the version on each purchase order to the prime contract it supports. Ask each direct supplier to confirm that the clause has reached the magnet maker, powder producer or alloy mill below them.

What evidence should you request from suppliers before January 1, 2027?

Ask each supplier of a covered material to name the country and facility for every production stage, per lot or heat. That means where the ore was mined, where it was refined, where rare earths were separated, where the metal or alloy was melted or produced, and where the magnet or part was made.

Build a per-lot origin-evidence request from those stages:

Send one row per lot or heat, and update it whenever the supplier's answer changes.

Mill test reports and certificates of conformance record the producing mill, heat and chemistry, and, for specialty metals, melt country. Mill certificates usually stop at the melt and rarely name the mine or refinery. For magnets, the FY2023 NDAA gives a useful template, listing the countries where the rare earths were mined, refined into oxides and made into alloy, and where the magnet was sintered or bonded and magnetized. Pub. L. 117-263, Section 857(a)(2).

Tie each statement to the lots it covers, since a declaration covers only one period. Ask about recycled feedstock too, since the MAY 2024 text counts it. Record "unknown" when a supplier cannot answer, rather than treating silence as compliance. Your team can open each request as a task and hand it to Scout Agent, who follows up with the supplier by email and phone. Traceability to raw materials covers working back through the tiers.

What should a supplier do before January 1, 2027?

Use the months before January 1, 2027 to find every item with a covered material and collect origin evidence per lot, so decisions on requalification and waivers land before the deadline. Starting on September 28, 2026 and finishing by December 24, 2026 leaves eight days before the upstream rule for new awards and the waiver limits take effect.

Alternate-source qualification is usually the longest step, so fund it early. EO 14415 accepts a failure to qualify a domestic source as nonavailability only when the qualification work is active, adequately funded and ongoing. Options for changing the material itself are in material substitution.

Questions teams ask

Does the clause apply to a magnet inside a COTS motor?

The COTS exception covers an end item containing a covered material, unless the item is 50 percent or more covered material by weight from January 1, 2027. A small magnet in a larger COTS motor qualifies as long as covered material is under 50 percent of the motor's weight. From January 1, 2027, a COTS magnet bought on its own is entirely covered material, so it no longer qualifies.

Does our existing contract change on January 1, 2027?

A contract with the MAY 2024 clause states the upstream stages as effective on that date for deliveries. The statute and the June 2026 deviation apply them to contracts awarded on or after that date. Ask your contracting officer which reading governs your contract.

Is a supplier's country of origin statement enough?

Usually it is not. Country of origin for trade purposes reflects where the item was last substantially transformed, which says nothing about where the ore was mined or refined.

If your team is planning origin requests to magnet, tantalum and tungsten suppliers before January 1, 2027, talk to our team.

This article is general information, not legal or tax advice. Check how the rules apply to your business with your legal or tax advisor.

Sources (11)

1. DFARS 252.225-7052 Restriction on the Acquisition of Certain Magnets, Tantalum, and Tungsten (MAY 2024)
2. Class Deviation 2026-O0041, Revision 1, DFARS Part 225 including 252.225-7961 (JUN 2026) (DEVIATION 2026-O0041)
3. DFARS Revolutionary FAR Overhaul Class Deviations list
4. DFARS 225.7018-3 Exceptions (eCFR)
5. DFARS 225.7018-4 Nonavailability determination (eCFR)
6. DFARS 225.7018-5 Contract clause (eCFR)
7. 10 U.S.C. 4872 Acquisition of sensitive materials from non-allied foreign nations: prohibition
8. Pub. L. 119-60, National Defense Authorization Act for Fiscal Year 2026, Sections 843, 844 and 848
9. Pub. L. 117-263, National Defense Authorization Act for Fiscal Year 2023, Section 857
10. Executive Order 14415, Securing America's Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials
11. Open DFARS Cases as of September 25, 2026