Rare-Earth magnet shortage fuels US-China trade strife

Business Jun 27, 2025

China has tightened controls on exports of rare-earth magnets—key parts for everything from electric cars to defense tech—making it harder for US companies to get what they need.
Even after a recent agreement to relax these rules, Chinese authorities are still holding up export licenses, keeping supplies stuck and tensions high.

China supplies 90% of world's rare-earth magnets

These delays have thrown a wrench into US supply chains, forcing companies to pay more and sometimes settle for lower-quality parts.
With China supplying 90% of the world's rare-earth magnets, this move puts major pressure on American industries like EVs and missile systems.
Production at big names like Ford has already been hit, highlighting how global tech competition is getting even tougher.