Overview

• China has imposed phased export controls on seven rare earth metals and magnets critical for electric vehicles, electronics, and military hardware.
• Western firms now face supply disruptions, with stockpiles expected to last only six months or less, raising alarms in the automotive and tech industries.
• The new export rules require Chinese firms to secure licenses, delaying shipments and exacerbating global dependencies on China’s near-monopoly in rare earth mining and processing.
• Beijing’s actions are seen as retaliation for U.S. tariffs on Chinese goods, escalating trade tensions between the two nations.
• Efforts in the U.S. and Europe to diversify rare earth sources and expand domestic production are underway, but viable alternatives remain years away.