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Trade War with China Highlights Auto Sector's Need for Rare-Earth Mineral Supply

  • As of 2024, more than 90% of the world's refined production of the four key rare earth elements used in permanent magnets for electric vehicle motors is dominated by China.
  • This dominance is due to China’s integrated supply chain, expanded export restrictions since 2023, and its strengthened influence over an extended range of critical minerals amid ongoing trade disputes.
  • Despite Western efforts to develop recycling and alternative sources, these processes remain energy-intensive, time-consuming, and currently insufficient to offset demand.
  • Analysts warn Europe’s rare earth stocks could deplete within five to six weeks, risking vehicle production halts, while only 7.5% of new US vehicles sold in early 2025 are electric.
  • This situation reveals severe supply vulnerabilities for Western clean technology and defense sectors, underscoring the need for coordinated strategies beyond existing recycling initiatives.
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The Daily Galaxy broke the news in on Sunday, May 25, 2025.
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