China’s dominance in the rare earth elements market has raised concerns about potential disruptions in the global auto industry. Rare earths are critical components in the production of electric vehicles and other advanced technologies. As China controls a significant portion of the supply chain, any restrictions or export limitations could lead to shortages and production shutdowns. This situation highlights the dependency of many industries on China’s resources and underscores the need for diversification of supply chains. While no immediate actions have been announced, the possibility of such measures has prompted discussions about long-term solutions to mitigate risks.
— new from Financial Times