According to Reuters, China has halted exports of its rare earth minerals to the United States as a retaliatory measure against the Trump administration’s aggressive new tariffs. These materials are crucial for the production of vital components for electric vehicles, namely batteries and magnets.
Chinese-based companies looking to export rare earth materials now need to apply for licenses from the Ministry of Commerce, which is typically a months-long process.
“When asked by my clients when their cargoes will be able to leave China, we give them an estimated time of 60 days, but it may actually take longer than that,” said a China rare earth trader, who spoke to Reuters on condition of anonymity given the topic’s sensitivity.
If the blockade on Chinese rare earth exports to the States lasts 60 days or longer, it will likely deplete American firms’ stockpiles. If the trade war between the United States and China doesn’t subside by then, major diversification away from China will likely occur to obtain these materials for the automotive, defense, and energy sectors.
“Does the export control or ban potentially have severe effects in the U.S.? Yes,” Daniel Pickard of U.S. Commerce Department told the New York Times. He went on to express that a resolution to the rare earths issue was in the best interest of China to remain dominant as a reputable supplier of the materials.
However, the rare earth mining industry is gradually growing in the United States. MP Materials chairman and CEO James Litinsky echoed President Trump’s defense concerns about depending on China for these critical materials for the defense industry. “Drones and robotics are widely considered the future of warfare, and based on everything we are seeing, the critical inputs for our future supply chain are shut down,” Litinsky told the New York Times. MP Materials hopes to start producing magnets in Texas by the end of 2025 for General Motors and other manufacturers.
Comments
Again, EVs benefit China the most currently bc of the amount of rare earths they have/control and the fact they run on cheap coal for electricity.
Exactly right, John. China has no oil so they build coal-fired power plants to feed electric cars that use rare earth materials that they’ve cornered the market on.
We have abundant oil reserves but very limited supplies of rare earth materials so EVs make much less sense for Americans if one considers the two options based on which is better for the self reliance of the nation.
Having said that, the US must accelerate their plans to be able to source rare earth materials locally. I understand the military has a 2027 timeframe to accomplish that but these materials have become vital to everyday life so we cannot be unable to supply something so important ourselves.
The biggest thing China does is process rare earth materials. They don’t mine all of it, but the do process it.
Processing we are lacking processing not the material itself! Thats why MP is at a point it can process it all itself and not ship it to China to do so. GM was smart to invest in them.
Exactly. It was never about the environment. It is about world domination and how to be able to coerce anyone to bend to their will.
Good. EVs suck “ballz-bearings” anyway!
A good friend of mine is a PE civil engineer. He’s so busy working on major construction projects focused on domestically sourcing these and other “strategic materials” that he’s only had two days off in three months. The push to insource these types of materials ASAP is incredible.
We have rare earth’s, we don’t have the mining infrastructure or the plants to process them.
Last time China did that to Japan in the early 2010s Japan found a work around by importing from Indonesia and Australia and it blew up in their face!
Military needs lots of rare earth minerals as well.
Like I have been saying for years, I will never understand the Politicization of EV’s….Both sides did it but for differing reasons.
New technologies need to be adopted quickly and lead in them or else fall behind.
Now we are scrambling.
Simply yep. But the force fit was a mistake because humane nature have some revolting. Hopefully that subsides because eventually the world will move on with or without them and who will continue to make parts for all the ICE profitably…..can you say MAD MAX collections and fighting for parts.
US has a lot of minerals, however some environmental issues cause a lot of delays. we also need to get back all our land that China has purchased. Many of those area are close to bases and possibly minerals. No foreign country especially china should be allow to own any land in the US>
@joe
Yup
We have more minerals than we can actually use. We can sell surplus in thew future as well.
What we do NOT have is the capability/Capacity to refine said minerals as of right now. It will have to start with lots more mining obviously but refineries need to pop up alongside or it will not make the huge difference we need.
This needs to be priority number one in my opinion. Both sides need to speed up permits and get this going right away.
Maybe be nice to Canada. We have 8 times more than USA in rare earth. Just saying.
Don’t overlook the impact this will have, and not just on EVs. Magnets are used in nearly every ICE to determine engine position during rotation.