China's Rare-Earth Export Controls Jeopardize $6.5 Trillion of Global Production

China has imposed or reinstated export controls on rare‑earth minerals and other critical materials, a move the International Energy Agency says could threaten about $6.5 trillion of downstream production worldwide. The curbs affect the automotive, high‑tech, defense and energy sectors, with the automotive industry outside China facing up to $3 trillion in losses, roughly 40 % of which would fall on the United States.

In Europe, Beijing added 14 companies to a blacklist shortly after the EU sanctioned Chinese and Russian firms over the war in Ukraine. The targeted firms, including Germany’s defence contractor Rheinmetall, rely on rare‑earths and other critical minerals for magnets, semiconductors, offshore wind turbines, drones and related advanced‑manufacturing applications. The measures highlight China’s use of mineral dominance as leverage in trade disputes.

The U.S.‑based National Association of Manufacturers released a policy agenda calling for expanded domestic mining, permitting reform, financial incentives and international partnerships to reduce reliance on foreign sources of critical minerals.