China's Rare Earth Export Curbs Put $6.5 Trillion in Global Production at Risk
China's export restrictions on rare earth elements and critical minerals pose a significant threat to global production, according to the International Energy Agency (IEA). The agency warns that approximately $6.5 trillion in annual production outside of China could be affected by these controls.
The IEA notes that while many countries have natural reserves of these materials, the world remains heavily dependent on China for the complex refining and processing required to turn them into usable components. This concentration of supply chains makes them vulnerable to disruptions.
The IEA's Global Critical Minerals Outlook 2026 highlights the fragility of these supply chains. In April 2025, Beijing implemented export controls on seven heavy rare earth elements, forcing several automakers to cut production or pause operations due to shortages in magnetic components.
Prices for base metals like copper, tin, and aluminum rose by around 33% between January 2025 and April 2026. The impact was even more pronounced for specialized minerals, with tungsten prices increasing sixfold and lithium prices more than doubling during the same period.