Quick Hit:

Iran is importing thousands of tons of explosive-grade chemicals from China to manufacture ballistic missiles, including for allied militias, as it ramps up pressure during nuclear talks with the Trump administration. The large-scale procurement underscores Tehran’s renewed focus on military buildup despite international sanctions and regional instability.

Key Details:

• Iran ordered ammonium perchlorate from a Hong Kong firm, enough for up to 800 missiles, sources say.
• Some of the materials are expected to go to regional militias such as the Houthis in Yemen.
• The U.S. has issued sanctions against Chinese and Iranian entities tied to Iran’s ballistic missile program.

Diving Deeper:

Iran has reportedly struck a major deal with a Chinese-based company to import thousands of tons of a chemical compound critical to the production of ballistic missiles—an alarming move as the Islamic regime continues to escalate its military posture during nuclear talks with President Trump’s administration.

According to individuals familiar with the arrangement, the material—ammonium perchlorate, a powerful oxidizer used in missile propellants—was ordered from Lion Commodities Holdings Ltd., a Hong Kong-based supplier. The deal was brokered by Pishgaman Tejarat Rafi Novin Co., an Iranian entity that could not be reached for comment. The shipments are expected to arrive in Iran over the coming months and could enable the production of as many as 800 ballistic missiles, one official said.

The development coincides with high-stakes nuclear negotiations and appears to be part of a broader Iranian strategy to restore its military capabilities and support its proxy networks across the Middle East. These militias include the Houthis in Yemen, Shiite groups in Iraq, and remnants of Hezbollah in Lebanon—all of which have received weapons and support from Iran in recent years.

“Time is running out on Iran’s decision pertaining to nuclear weapons,” President Trump posted this week after a call with Russian President Vladimir Putin.

U.S. intelligence reports indicate Iran has already transferred ballistic missiles to Shia militias in Iraq, raising concerns about new threats to U.S. personnel and allies in the region. In 2020, those same militias fired more than a dozen ballistic missiles at the U.S. air base in Al Asad, Iraq, following the killing of Iranian General Qassem Soleimani.

The volume of chemical material flowing from China to Iran is also raising red flags in Washington. Just months ago, U.S. officials tracked over 1,000 tons of sodium perchlorate—a precursor to ammonium perchlorate—delivered to Iranian ports. That batch alone was enough for roughly 260 short-range missiles.

A Chinese Foreign Ministry spokesperson insisted Beijing follows international law: “The Chinese side has always exercised strict control over dual-use items in accordance with China’s export control laws and regulations and its international obligations.”

Despite these statements, the Iranian regime appears undeterred. After an Israeli strike last October reportedly destroyed at least a dozen “planetary mixers” essential for producing solid propellant, Iranian engineers have begun repairs. Officials believe Iran still needs foreign-sourced materials to prevent production bottlenecks—yet storing them carries serious risk.

An April explosion at the Shahid Rajaee port, Iran’s busiest cargo hub, killed dozens after mishandled materials—likely ammonium or sodium perchlorate—detonated. The IRGC's Quds Force was reportedly involved in the storage of the chemicals, and some of the earlier Chinese shipments were lost in the blast.

“These substances are a major fire and explosive hazard,” said Fabian Hinz, a military expert at the International Institute for Strategic Studies. “Iran’s defense industrial complex does not have a strong track record in ensuring safety standards.”