Global automakers warn export limits on rare earth metals from China could trigger parts shortages and plant closures, Reuters reported on Oct. 21, 2025. New Chinese export restrictions take effect on Nov. 8, prompting firms to seek alternative supplies worldwide.  

"The situation is very tense," said Nadine Rajner, head of metal-powder supplier NMD, noting that countries like Sweden have deposits but lack mining and processing capacity. AlixPartners estimates China currently controls up to 70% of global rare-earths mining. Ryan Grimm, vice president of Toyota Motor’s North American unit, warned: "In two months they can stop our production and the entire automotive industry."  

Germany’s VDA lobby has already cautioned that the measures will significantly affect deliveries to Germany and Europe. Rare earths — a group of 17 elements including neodymium, praseodymium, europium and terbium — are critical for EV motors, batteries, electronics and renewable-energy technologies, and demand is expected to surge with the energy transition.  

Some Chinese exporters reported a sharp rise in foreign orders immediately after the restrictions were announced. #RareEarths #China #EVs #Toyota #FiatNews