Overview

• Despite a 90-day tariff truce and a London framework agreement, Chinese customs continue to stall rare earth export approvals, creating a backlog of over 500,000 license applications.
• Costs for critical elements like Dysprosium and Terbium have more than doubled and Yttrium prices have risen sixfold while Chinese domestic rates stay unchanged.
• German and U.S. manufacturers face production jitters, with at least one U.S. auto plant pausing output over magnet shortages and German industry warning of potential shutdowns.
• Under the EU’s Critical Raw Materials Act, member states are leaning on France to develop new mining, processing and recycling projects aimed at limiting single-country import dependency to 65 percent by 2030.
• Analysts caution that without firm timelines for clearing the export license backlog, supply restoration could be months away and leave high-tech, automotive and defense sectors exposed to further disruption.