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U.S. Dependence on China for Rare Earth Magnets Is Causing Shortages

  • On April 4, 2025, China halted exports of rare earth magnets, causing a supply crisis affecting U.S. Industries reliant on these materials.
  • This halt followed decades of U.S. Magnet production moving to China and heightened trade tensions that stalled domestic manufacturing.
  • China controls 90 percent of high-performance rare earth magnet production, while U.S. Mines and factories remain limited and rebuilding slowly.
  • Nazak Nikakhtar described this reliance as a critical vulnerability for both the United States and the global community, one that China consistently takes advantage of.
  • The disruption risks severe economic impacts in the U.S., prompting new joint ventures aiming to localize rare earth supply chains and reduce reliance on China.
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A number of metals are essential for energy transition, digitalization and defence. China dominates the market – and Germany is dangerously dependent.

·Frankfurt, Germany
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Political Wire broke the news in New York, United States on Monday, June 2, 2025.
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