Overview

• China's new export licensing rules on seven rare earth elements have effectively halted shipments to the US, impacting critical industries like automotive and defense.
• Beijing has formally warned South Korean companies against exporting Chinese-origin rare earth products to US defense contractors, threatening sanctions.
• US-bound exports of key materials such as tungsten and tellurium have plunged, with some shipments ceasing entirely, according to March customs data.
• Western manufacturers report dwindling stockpiles of critical minerals, with some industries facing potential shortages within months if supply chains are not restored.
• US lawmakers are expediting legislation to diversify critical mineral sources and reduce dependence on China's near-monopoly on rare earth processing.