Overview

• Since April 4, China’s Ministry of Commerce has mandated special licenses for seven rare earth elements and related magnets, creating significant approval backlogs and shipment delays
• Global automakers warn that existing magnet inventories will run out within weeks, threatening production halts in electric and conventional vehicle lines
• Trade negotiators secured fast-track export channels for US and EU firms, with General Motors, Ford and Stellantis among those granted accelerated approvals
• Defense producers have sounded alarms over shortages in critical systems, prompting the White House to link rare earth relief to potential easing of US chip export controls
• India is fast-tracking domestic mining and processing projects, auctioning new blocks and exploring alternative supply chains to reduce dependence on Chinese exports