China halts rare earth exports, sparking fears of shortages in critical industries

The big picture: China has halted exports of critical rare earth metals and magnets essential to industries ranging from automotive manufacturing to aerospace and defense. The move, which has sent shockwaves through global supply chains, began earlier this month when China placed new export restrictions on these minerals. The suspension comes as Beijing drafts a new regulatory framework for issuing export licenses, a process expected to restrict access to these vital materials for specific companies, particularly American military contractors. Industry leaders fear the delay in establishing the licensing system could lead to shortages of rare earth components outside of China. Michael Silver, CEO of American Elements, told the New York Times that his company had been informed it would take at least 45 days before exports might resume. "We anticipated this trade war and increased our inventory last winter," Silver said, adding that his firm could meet existing contracts in the interim ... Read full article.