Beijing, April 13, 2025 – China’s decision to impose export controls on seven rare earth elements has brought shipments to a sudden stop, raising serious concerns across global supply chains that rely on these critical materials.
The export halt began on April 4, following the implementation of new government regulations requiring special licenses to ship these elements abroad. The restricted materials—essential in defense, renewable energy, and high-tech manufacturing—are now subject to an opaque licensing process managed by China’s Ministry of Commerce. Industry insiders say approvals may take anywhere from several weeks to months, creating deep uncertainty for international buyers.
“Clients are being told to expect at least 60 days of delay, but realistically, it could take longer,” said a Chinese trader specializing in rare earths, who requested anonymity due to the sensitivity of the issue.
The situation is particularly concerning for buyers in the United States, where trade tensions with China have escalated in recent months. If the freeze persists beyond two months, existing stockpiles in several countries could run low, potentially disrupting production in sectors that depend on rare earth inputs—including electric vehicles, wind turbines, and advanced military systems.
China currently supplies about 90% of the world’s rare earth elements. The new controls showcase how the country can leverage this dominance to exert geopolitical influence. However, experts warn that such moves may accelerate efforts by other countries to diversify supply chains and reduce dependence on Chinese exports.
In a further sign of disruption, several Chinese rare earth exporters have invoked force majeure clauses in contracts with foreign buyers. Shipments already prepared for export but still awaiting customs clearance have reportedly been blocked from leaving port.
The full scale of the impact remains uncertain, but global buyers are already scrambling to assess the risks and explore alternative sources. Countries like Australia, the United States, and Canada—already working to develop domestic rare earth production—may see renewed urgency and investment in their projects as a result.
As governments and industries brace for extended delays, the current halt in Chinese exports serves as a stark reminder of the fragility of critical mineral supply chains in an increasingly volatile global trade environment.