China tightens control over global mineral lifeline
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China cut off exports of heavy rare earth elements on April 4, and the auto industry didn’t even have a second to blink. Everything stopped. Assembly lines froze, factories shut down, and by the end of the week, the panic was global. Companies in Europe went dark. Ford was forced to idle its Explorer SUV production line. Every automaker relying on these minerals got hit. And all of it was triggered by one government call in Beijing. This wasn’t some rumor or slow buildup. It happened fast, and no one was ready. Dan Hearsch, managing director at AlixPartners, said, “It came out of nowhere. Nobody had any time to react to it. I mean, within a matter of weeks, all of the material in the pipeline was out.” Automakers depend on rare earths to build everything from the smallest electric switch to the biggest battery, and now those minerals aren’t crossing China’s border. China tightens control over global mineral lifeline This entire crisis is tied to a specific group of 17 minerals called rare earth elements. They’re found in military aircraft, smartphones, satellites, and sports equipment. But in cars? They’re everywhere. You’ll find them in pollution filters in gas vehicles, and inside the electric motors and battery systems of EVs. Gracelin Baskaran, who runs the Critical Minerals Security Program at the Center for Strategic and International Studies, put it like this: “Rare earths are really critical, and not just for electric vehicles. They are in your seat belt, your steering wheels, various parts of your electrical components. You are not going to manufacture a car without rare earths.” There are different types of rare earths—light, medium, and heavy. The light ones are easier to dig up. The heavy ones? That’s where China owns the whole game. They control 70% of…
Filed under: News - @ June 28, 2025 3:24 pm