China suspends exports of critical rare earth minerals and magnets, shaking global supply chains and intensifying its trade conflict with the U.S.
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| China’s export ban on rare earth magnets and metals threatens global production of electric vehicles, drones, and military technologies. Image: CH |
GANZHOU, China — April 14, 2025:
China has suspended exports of key rare earth elements and magnets, critical materials that power technologies across automotive, aerospace, electronics, and defense sectors. The sweeping halt has thrown global supply chains into turmoil, just days after a fresh round of U.S. tariffs took effect, reads an NYT report.
The Chinese government, citing national security and regulatory revisions, is implementing a new export licensing system that affects six heavy rare earth metals and rare earth magnets—materials overwhelmingly produced and refined within China. Without the required licenses, exports have been blocked at most Chinese ports, causing widespread disruption.
Industry executives warn that companies with limited stockpiles could soon face production delays. Rare earth magnets are essential for electric motors used in EVs, drones, robotics, and missiles. Even traditional gasoline-powered cars rely on these components for tasks like power steering.
Michael Silver, CEO of American Elements, said his company anticipated the move and stockpiled inventory, but many others did not. “We’re prepared, but this is a serious supply chain threat,” he said.
Daniel Pickard, an advisor to the U.S. Trade Representative and Department of Commerce, called for urgent diplomatic action, warning that the disruption could damage China’s reliability as a global supplier.
James Litinsky, CEO of MP Materials—the only U.S.-based rare earth miner—highlighted the national security stakes. “China’s move puts our defense technology pipeline at risk, especially for drones and robotics,” he said.
The export restrictions are unevenly enforced. Some Chinese ports allow shipments with trace amounts of restricted materials, while others require rigorous testing to certify the absence of heavy rare earths. Despite recent U.S. tariff exemptions on consumer electronics, magnet exports remain blocked.
China controls 99% of global heavy rare earth output and 90% of rare earth magnet production. A former Vietnamese supplier has been offline for over a year, leaving China as the dominant source.
Most of China’s rare earth industry is concentrated around Ganzhou and Longnan in Jiangxi province. Operations have quietly resumed at some mines, despite previous shutdowns over environmental pollution. JL Mag Rare-Earth Company, headquartered in Ganzhou, remains a global leader, supplying magnets to Tesla and BYD.
Chinese President Xi Jinping’s 2019 visit to JL Mag during prior trade tensions is now viewed as a warning signal. That signal has materialized in 2025, with global implications.
China’s Ministry of Commerce has not responded to requests for comment.