From CNBC: 2025-06-06 03:28:00

In a high-stakes call, U.S. and Chinese presidents discuss global rare earth shortage threatening car and industrial production. China dominates mining and production of these critical minerals, imposing export controls despite trade agreement. Survey shows 75% of affected companies could run out of supplies within three months.

Following a breakthrough trade agreement, China strengthens export controls on critical minerals, surprising Washington by not repealing rare earth restrictions. Only some U.S. companies have received limited export licenses. Further trade talks may involve easing restrictions in tech exports for accelerated rare earth approvals in return.

China’s rare earth restrictions extend beyond the U.S., affecting European auto parts companies. Production halts are occurring, with only 25% of export licenses approved. Despite some easing of controls, European companies are experiencing supply chain disruptions. Japan’s Suzuki Motor briefly suspends Swift car production due to China’s curbs.

As China tightens export controls on critical minerals, including gallium, germanium, and antimony, industry faces challenges. Tungsten, used in weapons and semiconductors, is crucial but supplies are dwindling. Western companies may face shortages as recycling efforts fail to meet demand for the metal in cars and other products.

Read more: Trump-Xi call isn’t enough to resolve critical mineral shortage