From Yahoo Finance: 2025-04-14 12:28:00

China’s suspension of rare earth mineral exports to the US could impact automakers like Tesla, GM, and Rivian. China’s restrictions on six rare earth metals used in autos and aerospace come after enhanced tariffs from President Trump in the ongoing trade war.

Metal shipments are stuck in Chinese ports awaiting new export permit instructions. China produces 99% of the world’s rare earth minerals and 90% of the magnets. The ban could have severe effects on US industries.

Rare earth minerals are crucial for modern vehicle production, with China’s ban slowing access to key minerals like yttrium and dysprosium used in EV batteries and motors. Chinese sellers have declared force majeure on contracts, unable to fulfill due to external forces.

US EV manufacturers like Tesla, GM, Rivian, and Ford are at risk due to their reliance on Chinese rare earth minerals. Tesla plans to reduce rare earth use in motors, while GM explores options to limit or eliminate them. European and Japanese rivals may benefit from access to alternative resources.

Read more: Why Tesla, GM, and Rivian will be hurt most by China’s critical minerals export ban