Carmakers Race to Secure Rare Earths Amid China Export Controls

Concerned carmakers race to beat #China’s rare earths deadline

Posted on October 22, 2025 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

A red electric car with an open door is showcased in a manufacturing facility. The background features workers and an European Union flag, emphasizing the automotive industry's focus on electric vehicle production.

LONDON/BERLIN, Oct 21 (Reuters) – Global automakers are scouring the globe for crucial rare earths ahead of looming Chinese export controls, with executives worried they could lead to parts shortages and plant closures.

Rare earth magnets power motors in car parts such as side mirrors, speakers, oil pumps, windshield wipers and fuel leakage and braking sensors. They play an even bigger role in EVs.

While a U.S.-China deal diverted a supply threat, stockpiles were depleted by similar restrictions earlier this year, while Beijing has also made it harder to get export licenses.

China has since dramatically expanded export curbs, with companies facing global supply shortages.

Consultancy AlixPartners estimates China controls up to 70% of global rare-earths mining, 85% of refining capacity and about 90% of rare-earths metal alloy and magnet production.

The new Chinese export control list includes elements like ytterbium, holmium and europium, also used in making cars.