Overview

• China added seven rare-earth minerals and magnets to its export control list in early April 2025, requiring licenses for exports, which has disrupted Tesla's Optimus robot production.
• Elon Musk stated that Tesla is negotiating with Chinese authorities to obtain export licenses, with assurances that the magnets will not be used for military purposes.
• Optimus robots rely on rare-earth magnets for compact actuator motors, and the new restrictions have created a bottleneck in Tesla’s supply chain.
• Musk reiterated Tesla's goal to produce thousands of Optimus robots by the end of 2025 but acknowledged that the timeline is now uncertain due to supply chain challenges.
• China's dominance in rare-earth production and processing—controlling over 90% of global supply—underscores the geopolitical and economic leverage it holds in the ongoing US-China trade tensions.