Overview

• China has halted exports of key rare earth minerals and magnets, enforcing a licensing system that remains non-operational, causing delays at ports worldwide.
• The export restrictions, retaliating against steep U.S. tariffs, target materials essential to electric vehicles, semiconductors, aerospace, and defense industries.
• China controls 90-99% of global rare earth production, underscoring vulnerabilities in U.S. and global supply chains as industries face potential shortages.
• U.S. companies report wait times of 45-60 days for export licenses, with stockpiles expected to sustain operations only temporarily.
• The U.S. is responding by invoking the Defense Production Act and exploring domestic production and alternative supply chains to reduce reliance on China.