Overview

• China has imposed strict export controls requiring licenses for seven key rare earth metals, halting or delaying shipments critical to electric vehicles, electronics, and defense systems.
• U.S.-bound exports of tellurium and tungsten have sharply declined, with some categories seeing shipments completely halted, according to March customs data.
• Western automakers, including Tesla, face potential production disruptions within months as stockpiles of rare earth magnets and metals run low.
• Beijing has warned South Korean firms against exporting Chinese-origin rare earth products to U.S. defense contractors, threatening potential sanctions.
• China’s dominance in rare earth mining and processing—controlling 90% of global refining capacity—underscores the vulnerabilities of Western supply chains.