Catenaa, Tuesday, June 24, 2025- China has slashed exports of rare earth minerals by 75 percent since April, sending shockwaves through the global automotive industry and prompting fears of a fresh supply chain crisis.
The steep cuts have particularly impacted the United States, which saw a 92 percent drop in shipments last month compared to May 2024.
The rare earth chokehold has left major automakers scrambling.
Ford has acknowledged it is operating on a day-to-day supply of the materials essential for electric motors, advanced sensors and vehicle electronics, with some factories already idled.
The restrictions revive memories of the pandemic-era semiconductor shortages that crippled car production worldwide. Industry analysts warn that if the trend continues, manufacturing could slow drastically, with cascading effects on prices and production targets.
According to data cited by Bloomberg, China controls around 90 percent of the global rare earth market.
The latest cutbacks mark the lowest export levels since early 2020 and before that, 2015. Some analysts believe the move is part of a broader geopolitical strategy to pressure Western economies.
Despite President Donald Trump announcing earlier this month that the rare earth dispute had been resolved following discussions with President Xi Jinping, trade flows remain at historic lows.
The US government is now under renewed pressure to establish a domestic rare earth supply chain to guard against future disruptions.
