ASIATODAY.ID, JAKARTA – China is set to restrict exports of rare earth elements (REEs) starting 8 November 2025, sparking widespread panic across the global automotive industry.
These metals are critical components for electric motors, batteries, and advanced vehicle technologies, with the majority of global supply heavily reliant on China.
Consultancy AlixPartners reports that China dominates the market with:
70% of global mining activity
85% of refining capacity
Nearly 90% of global production of magnets and metal alloys
This dependency puts automakers in a vulnerable position.
“We are nearly out of stock and have only limited inventory,” said Nadine Rajner, CEO of German metal powder supplier NMD quoted on October 31, 2025.
“Even though countries like Sweden have rare earth resources, they lack sufficient mining and refining capacity,” she added.
Shipping times from China to Europe can now reach up to 45 days, compounded by dwindling stocks due to prior restrictions. As a result, many companies are hoarding rare earth materials in anticipation of shortages.
“We expect the automotive industry to engage in large-scale stockpiling ahead of the deadline,” said Bruno Gahery, President of Bosch for Western Europe.
In response, major automakers such as General Motors, BMW, Renault, and component suppliers ZF Friedrichshafen and BorgWarner are developing electric motors with reduced or even zero rare earth content.
However, this technology will require several years before mass production is feasible.
Global Implications:
EV supply chains face a serious logistics crisis.
Prices of rare earth metals are expected to soar.
Countries and companies are now in a race to secure alternative sources.
China’s move marks one of the most significant challenges for the global auto industry in recent decades, igniting a worldwide scramble for metals often dubbed the “modern-day gold” of electric vehicles. (AT Network)
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