China blocks rare earth exports, rattling global tech and defense sectors
China has halted exports of heavy rare earth metals and magnets vital to electric vehicles, defense systems and consumer electronics, escalating trade tensions following President Trump’s latest round of tariffs.
Keith Bradsher reports for The New York Times.
In short:
- China suspended shipments of six rare earth metals and related magnets that are essential for car manufacturing, aerospace, semiconductors and military hardware. The move follows a steep tariff hike from the Trump administration earlier this month.
- Rare earth metals like dysprosium are crucial to making magnets that function under extreme heat or electric fields, and they’re now subject to export licenses that don’t yet exist. Many U.S. companies lack significant stockpiles, unlike some Japanese firms that learned from past disruptions.
- The export halt has disrupted global supply chains, as China accounts for 90% of the world’s rare earth magnet production. Factories in China’s Jiangxi Province, including a major supplier to Tesla and BYD, now face uncertain futures under tighter export controls and environmental scrutiny.
Key quote:
“Does the export control or ban potentially have severe effects in the U.S.? Yes.”
— Daniel Pickard, chairman of the critical minerals advisory committee for the Office of the United States Trade Representative and Department of Commerce
Why this matters:
China controls nearly all of the global supply of certain heavy rare earth elements, and when it cuts off access, the ripple effects can be immense. Factories in the U.S., Europe and Japan rely on these materials not just for consumer electronics but also for technologies critical to the energy transition and national security. Even small components like rare earth magnets hold together vast industries: They are critical components of wind turbines, help electric motors run efficiently, and keep defense systems operational under intense conditions. Unlike oil or wheat, these materials can’t easily be substituted or scaled elsewhere in a hurry.
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