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China’s Rare-Earth Export Controls Jolt Supply Chains as November Squeeze Nears

Policymakers rush to diversify supply as companies stockpile and warn of production risks next month.

Overview

  • Chinese authorities have announced new export controls on rare earths that industry interprets as a near-term supply cutoff.
  • More than 90 percent of global rare-earth production is tied to China, with an even larger share for heavy rare earths used in high-performance magnets.
  • Manufacturers are buying up available inventories, and analysts warn that tighter rules expected from November could force production stoppages.
  • The United States is moving to secure alternatives, with President Donald Trump signing a multibillion-dollar raw-materials deal with Australia and funding domestic supply chains.
  • The European Union, which has a Critical Raw Materials Act, is working with industry on an emergency program, while separate Chinese curbs on certain chip exports have raised fresh risks for German carmakers.