Overview

• China’s April export controls on seven heavy rare earths and powerful magnets forced companies worldwide to secure permits, leading to halved shipments and halted production at plants such as Ford’s Chicago facility and Suzuki’s Swift line.
• The temporary six-month export licences granted for GM, Ford and Stellantis suppliers aim to unclog supply chains after U.S.-China trade talks highlighted the strategic importance of rare earth magnets.
• U.S. auto parts groups warned of “serious, real-time risks” to production of components ranging from electric motors to sensors, prompting appeals to the Trump administration for decisive action.
• India, which imports 99% of its magnets from China despite holding 6.9 million tonnes of reserves, is crafting fiscal incentives to underwrite domestic extraction and processing to build a local supply chain.
• Analysts caution that China’s control of about 90% of global refining capacity continues to give Beijing leverage over critical sectors, spurring diversification initiatives in the U.S., India and partners like Australia.