On October 20, 2025, the European Union found itself at the center of a rapidly evolving crisis that could reshape the future of global technology and manufacturing. EU industry chief Stephane Sejourne convened urgent talks with top executives from European industries reeling from China’s newly expanded controls on rare earth exports—a move that’s already forced some companies to halt production and has inflicted economic harm across the bloc, according to AFP.
Rare earth elements, a group of 17 metals with names like neodymium and dysprosium, may not be as scarce as their moniker suggests. In fact, the United States Geological Survey estimated in 2024 that there are 110 million tons of deposits worldwide, with China holding about 44 million tons, Vietnam 22 million, Brazil 21 million, Russia 10 million, and India nearly 7 million. But here’s the catch: while these minerals are scattered across the globe, China is unrivaled in mining and—more importantly—processing them. As Reuters and other outlets have reported, China controls roughly 70% of global rare earth mining and a staggering 90% of processing, making it the world’s dominant supplier.
These minerals are the unsung heroes behind the magnets that power everything from electric vehicles and smartphones to advanced weaponry, wind turbines, and computer chips. The list of their applications is nearly endless—europium for television screens, cerium for refining oil, lanthanum for catalytic converters, and those all-important super-strong magnets for green energy. Their unique properties are largely irreplaceable, or at the very least, prohibitively expensive to substitute. That’s why China’s latest move has sent shockwaves through the global economy.
According to Bloomberg, China announced in October 2025 that it would expand its rare earth export restrictions starting in December, broadening controls beyond the initial seven rare earth elements it restricted in April. The new measures will cover a wider range of rare earth metals and related products, deepening concerns about the security of supply chains for major global companies such as ASML Holding, Ford Motor, and Hyundai Motor. The European Union has already stated that these restrictions have forced some of its companies to halt production, with economic consequences rippling through the auto, electronics, and defense sectors.
"China versus the world," U.S. Treasury Secretary Scott Bessent declared, slamming Beijing’s export curbs on rare earth mining, smelting, and processing technologies. His words, reported by AFP, reflect the growing sense that rare earths are more than just commodities—they’re now a geopolitical bargaining chip in the high-stakes rivalry between Beijing and Washington. The United States is leading a global push to invest in rare earth mining outside China, seeking to reduce its own dependency and shore up vulnerable supply chains. In fact, rare earth mining stocks have surged in 2025, with Australia’s Lynas Rare Earths nearly tripling in value, as investors bet on a scramble for alternative sources.
The EU’s Sejourne, recognizing the urgency, brought together industry leaders by video conference early on October 20 to assess the fallout and discuss what further steps Brussels might take. The EU is also coordinating with G7 partners, exploring a united response to China’s export curbs. The stakes are high: rare earths are not only crucial for Europe’s high-tech industries, but also for its ambitions in renewable energy and defense. As Brussels told AFP, some companies have already been forced to halt production, a sign of just how quickly the impact has been felt.
So why is the world so dependent on China for these minerals? The answer lies in decades of strategic investment by Beijing. According to AFP and the Associated Press, China has poured resources into refining operations, often sidestepping the strict environmental oversight required elsewhere. The refining process is notoriously dirty, involving heavy chemical use and producing toxic waste—a deterrent for many other countries. What’s more, China has filed a vast number of patents on rare earth production, making it even harder for competitors to break in. As a result, even companies that mine rare earths in places like Australia often ship their ore to China for processing, reinforcing the global reliance on a single supplier.
This isn’t the first time rare earths have become a flashpoint in international relations. Back in 2010, China abruptly halted rare earth exports to Japan over a territorial dispute, causing severe disruption to Japanese manufacturers. That episode prompted Tokyo to diversify its supplies, signing deals with Australia’s Lynas and ramping up recycling efforts. More recently, in April 2025, China began requiring domestic exporters to apply for licenses—a move widely seen as retaliation for U.S. tariffs, and one that sparked alarm in Washington and Brussels alike. Even before the latest expansion of controls, bureaucratic delays and selective approvals were already slowing shipments and creating uncertainty for global firms.
Now, as China prepares to tighten the screws even further in December, the world is bracing for a new era of competition and innovation. The U.S. and EU are scrambling to boost domestic production and recycling, hoping to reduce their vulnerability. But as the Associated Press notes, mining rare earths is expensive and fraught with environmental risks. The minerals are often present in tiny concentrations, requiring massive amounts of rock to be processed for a relatively small yield—often just a powdery product at the end of a long, toxic chain.
Meanwhile, the market is reacting in real time. Rare earth mining stocks have soared, while the response among rare earth users has been more muted. Traders and analysts are increasingly viewing China’s restrictions as a geopolitical tool, a lever Beijing can pull in its ongoing tensions with the United States and its allies. As countries and companies adapt, we may see an uptick in investment in rare earth production outside China, technological innovations to reduce reliance on these elements, or shifts in international trade negotiations.
For now, the full impact of China’s expanded export restrictions remains to be seen. What’s clear is that rare earths have become more than just a set of minerals—they’re now at the heart of a complex web of economic, technological, and political interests, with the potential to reshape industries and alliances alike. As the world waits for December’s new rules to take effect, one thing is certain: the scramble for rare earths has only just begun.
