Global alarm grows as China’s critical mineral export ban disrupts supply chains
Fears over China’s grip on critical minerals escalated today as leading global carmakers joined their US counterparts in warning that Beijing’s sweeping export restrictions on rare earth alloys, mixtures, and magnets could spark significant production delays.
German automakers became the latest to raise the alarm, cautioning that the curbs risk halting vehicle production and disrupting local economies. Their concerns echo those voiced by an Indian electric vehicle manufacturer last week.
China’s move in April to suspend exports of a broad range of critical minerals and magnets has sent shockwaves through supply chains relied upon by car manufacturers, aerospace firms, semiconductor producers, and military contractors worldwide. The decision highlights China’s dominant role in the critical minerals market and is widely seen as a strategic move in its ongoing trade standoff with US President Donald Trump.
Shipments of the magnets—vital components in products ranging from cars and drones to robotics and missiles—have been blocked at Chinese ports as authorities work to finalise a new regulatory framework. Once implemented, the new rules may permanently restrict supplies to certain companies, including US defence contractors.
The export halt has prompted urgent meetings in boardrooms and government offices from Washington to Tokyo, as officials scramble to find scarce alternative sources. Industry leaders warn that without a resolution, production across multiple sectors could come to a standstill by late summer.
“If the situation is not changed quickly, production delays and even production outages can no longer be ruled out,” warned Hildegard Mueller, head of Germany’s automotive industry lobby.
