Overview

• China imposed export restrictions on multiple rare earth metals in April in response to US tariffs under President Trump, triggering an 8 percent average price rise in May.
• Data from the Vereinigung der bayerischen Wirtschaft show sharper spikes for specific elements, with Terbium up nearly 19 percent, Gadolinium up 17 percent and Samarium over 15 percent.
• German industry groups VBW and the BDI warn that these metals, vital for electronics, automotive and defense manufacturing, are driving acute cost pressures and exposing supply vulnerabilities.
• China currently processes about 90 percent of the world’s rare earths for industrial use, underscoring its leverage in geopolitical and trade disputes.
• Under the EU’s Critical Raw Materials Act, German and EU policymakers are pursuing domestic mining, processing and recycling initiatives and forging new supplier partnerships to cut dependence on a single country below 65 percent by 2030.