Highlights

• China continues to restrict exports of seven critical rare earth elements, impacting global technology and manufacturing sectors.
• U.S. and European industries face significant material shortages, driving urgent need for domestic refining and alternative supply chains.
• Short-term diplomatic truces cannot resolve long-standing rare earth supply chain vulnerabilities without systemic industrial policy changes.

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Sohrab Darabshaw (opens in a new tab) writing for MetalMiner (opens in a new tab) warns don’t let the marketing out  of the White House fool you.

Despite a 90-day tariff ceasefire between the U.S. and China, rare earth export bottlenecks persist, according to the the recent piece, one validated by previous Rare Earth Exchanges (REEx) articles.

While some Chinese producers have received export licenses, the core restrictions on seven strategic rare earths remain, including dysprosium, terbium, samarium, and lutetium — all vital for EVs, fighter jets, and advanced electronics.

Key Takeaways from the Report

• Export licenses granted selectively, including for a supplier to Volkswagen, but most U.S.-bound shipments remain delayed or blocked.
• Seven rare earths still restricted, despite the tariff truce. End-use declarations and government “endorsements” required, adding further delays.
• U.S. manufacturers like Tesla and Lockheed Martin have warned of material shortages in recent investor briefings.
• European and Indian automakers are scrambling for alternatives, with India even considering full motor imports from China to avoid REE shortages.
• China maintains tight control, citing national security, while lifting some firms off the “unreliable entity list” — but only temporarily.
• Westerndiversification underway, but projects in Brazil, the U.S., and Europewill take years to come online.

Short-Term Chaos, Long-Term Realignment

The MetalMiner report confirms what we at REEx have consistently emphasized: policy announcements don’t move material — supply chains do. Even with a diplomatic pause, China’s tight grip on REE processing and export control mechanisms continues to shape global trade flow.

While Beijing selectively reopens taps for favored partners, U.S. and European industries remain exposed. The longer the delays, the clearer it becomes: domestic refining, magnet manufacturing, and recycling are no longer optional — they are strategic imperatives.

Aclara’s Brazil–South Carolina pipeline, EU self-sufficiency goals, and India’s desperate pivot to pre-assembled motors all signal the same truth suggests this reality. China’s dominance is no accident — and dismantling it will require systemic industrial commitment, not short-term truces.  Is President Donald Trump ready to embrace true industrial policy? Tariffs and free market solutions won’t be sufficient to overcome this peak, not at least in the next several years. As REEx has emphasized Trump will need to likely do a temporary (multi-year) deal to make the commodities available, while a resilience policy is shaped and executed.

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