China Rare Earths: EU Concerns & Export Controls
the EU demands China lift rare earth mineral and magnet export controls amid escalating supply concerns, a situation EU trade chief Maros Sefcovic calls “alarming.” China’s dominance, controlling approximately 90% of the global supply of these vital materials, has sparked worries across European industries.These materials are crucial for electric vehicles, smartphones, and military equipment. Beijing’s export controls, initiated in response to tariffs, now impact businesses worldwide. The measures require licenses for rare earth elements like dysprosium and terbium.The News Directory 3 team is following this story, as European governments seek solutions to dwindling reserves and potential production shutdowns. Discover what’s next in the continuing diplomatic efforts.
EU urges china to end rare earth export controls amid supply concerns
Updated June 4, 2025
Paris — The European Union is calling on china to cease its restrictions on the export of rare earth minerals and magnets, essential components in various high-tech industries. EU trade chief Maros Sefcovic described the situation facing European industries as “alarming.”
The appeal occurred during a meeting in Paris on Tuesday between top commerce officials from both sides. European sectors are increasingly worried about a shortage of these critical materials, which are vital for manufacturing electric vehicles, smartphones, military equipment, and aircraft.
Sefcovic briefed reporters Wednesday, a day after meeting wiht Chinese Commerce Minister Wang Wentao. He stated he informed his counterpart about the “alarming situation” in the European car industry and industry in general, emphasizing that rare earths and permanent magnets are “absolutely essential for industrial production.”
China controls approximately 90% of the global supply of rare earth minerals. In April, Beijing implemented export controls on these materials, a move seen as retaliation for tariffs imposed by then-U.S. President Donald Trump.
The restrictions require licenses for exporting seven specific rare earth elements – dysprosium, gadolinium, lutetium, samarium, scandium, terbium, and yttrium – along with several rare earth magnets. These measures, initiated shortly after Trump’s tariff announcements, have impacted businesses worldwide.
While seemingly aimed at the U.S.,these export controls have created challenges for companies globally. Industry groups and business chambers are urging European governments to find a solution, as mineral reserves dwindle and production in some areas faces potential shutdowns.
What’s next
The EU will likely continue diplomatic efforts to diversify its supply chains for rare earth minerals and reduce its reliance on China. Further discussions between the EU and China are expected to address these trade concerns.