Overview

• China has imposed export licensing requirements on seven medium and heavy rare earth elements, pausing exports and creating uncertainty in global supply chains.
• The U.S., reliant on China for over 90% of rare earth processing, is fast-tracking domestic mining and refining projects, including expanding operations at the Mountain Pass mine in California.
• MP Materials, the operator of the U.S.’s only rare earth mine, has halted shipments to China and is focusing on refining and selling domestically and to allied countries.
• The restrictions heavily impact U.S. defense systems, which depend on rare earths for advanced weaponry, while also raising concerns about healthcare applications like MRI contrast agents.
• Countries like India, with lower rare earth import volumes and existing stockpiles, face minimal immediate disruption but are working to diversify critical mineral sources.