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EU Chamber Reports Surge in Production Halts as China’s Rare-Earth Licenses Stall

A slow, opaque licensing system is choking supplies to European manufacturers in China.

Overview

  • European Chamber data point to 46 factory stoppages in September, up from seven in August, with more likely through December.
  • Of 141 export-license applications filed in China, 19 were approved, 121 remain pending, and one was rejected due to a data error.
  • One member company reported losses of several million euros, and the Chamber warns of threats to global supply chains.
  • An EU-brokered mechanism announced in July delivered some relief, yet many firms still struggle to secure essential materials.
  • Rare earths vital for permanent magnets, electronics, LEDs and EV motors are largely produced and processed in China, giving Beijing significant leverage.