The Chinese toymaker said he was seeking parts for a “magic horse,” a metal-framed playground pony. But the exotic, wildly expensive raw material he wanted seemed better suited for space travel than backyard play.
The Chinese toymaker said he was seeking parts for a “magic horse,” a metal-framed playground pony. But the exotic, wildly expensive raw material he wanted seemed better suited for space travel than backyard play.
His shopping list, sent by email to a Seattle factory, started with 20 tons of maraging steel, an ultra-strong alloy often used in rockets. The buyer didn’t flinch at the price tag — $2 million — but he repeatedly insisted on secrecy. “This material,” an associate confided in an email, “are danger (sic) goods.”
Only in recent months did the scope of the ruse become apparent. The destination for the specialty steel was not China but Iran, and the order had nothing to do with toys, U.S. investigators say.
“We are certain,” said a law enforcement official familiar with the case, “that the metal was meant for advanced centrifuges in Iran’s nuclear program.”
Last month, the Justice Department announced indictments against two people, one Chinese and the other Iranian, for conspiring to acquire maraging steel and other restricted American technology. U.S. officials say the case is part of a broader effort by Iran to dramatically expand its capacity to enrich uranium—with Chinese firms serving as willing accomplices.
The United States and its European allies have imposed ever-escalating sanctions intended to cut off Iran from sensitive technology and restricted material required for its nuclear program and to reduce its access to the global oil market. The goal is to stop Iran’s progress toward what the West believes is a nuclear arsenal, even as Iran maintains its nuclear efforts are strictly part of a civilian energy program.
Maraging steel is a critical material in a new, highly efficient centrifuge that Iran has struggled for years to build. Barred by sanctions from buying the alloy legally, Iranian nuclear officials have sought to secretly acquire it from Western companies. In recent years, U.S. officials say, an increasing number of Chinese merchants have volunteered to help, serving as middlemen in elaborate schemes to obtain the steel and other forbidden material for Iran’s uranium enrichment plants as well as its missiles factories.
The Seattle case is at least the fourth in the past two years in which companies based in China have been accused of helping Iran try to purchase sensitive technology. Although Iran has used Chinese go-betweens in the past, U.S. officials said sanctions have forced the isolated Iranian government to rely increasingly on China for economic help and access to restricted goods.
Although the Obama administration has praised China for reducing its imports of Iranian oil in recent months, bilateral trade between Tehran and Beijing surged in the previous decade, from $2.5 billion in 2000 to $29.3 billion in 2010. The increase has softened the impact of international sanctions, U.S. officials and analysts say.
With the latest case, however, U.S. warnings about Iranian-Chinese collusion have gained new urgency. If Iran can buy enough maraging steel on the black market, it can build more-efficient centrifuges, which will enrich uranium much faster than the machines it now uses.
“It is a major bottleneck in Iran’s production,” said David Albright, a former U.N. weapons inspector.
While Iran appears to have the know-how to make better centrifuges, the shortage of high-strength materials demanded by the new version — particularly maraging steel and carbon fiber — has prevented its scientists from producing more than a few hundred for testing, he said.