Core Insights - Expected new Chinese curbs on rare earth metal exports could significantly impact the European auto industry due to low reserves of these materials [1][2] - Despite a July agreement to expedite shipments to Europe, China continues to maintain tight control over rare earth exports, recently announcing expanded curbs [1][2] - The rare earth metal industry, although valued at below $5 billion globally, is crucial for electric motors and other vehicle components, and its constraints could slow down the entire global auto industry [2][3] Industry Impact - The Italian auto part maker lobby ANFIA highlighted that manufacturers had previously managed to maintain production despite supply curbs, but current reserves of rare earth metals are now depleted [2] - The depletion of reserves means that the buffer that previously existed for manufacturers is no longer available, raising concerns about future production capabilities [2] Market Dynamics - China refines and processes the majority of the world's rare earths, which are essential for various industries, including automotive manufacturing [2] - The auto industry relies on rare earths for critical components, indicating that any disruption in supply could have widespread repercussions [3]

China's latest export controls on rare earths are expected to have a direct impact on the global semiconductor supply chain, complicating the production of AI and memory chips from major US and South Korean suppliers, according to analysts. On Thursday, China's Ministry of Commerce imposed a raft of new export controls on rare earth materials critical for the chip manufacturing process. It imposed restrictions on the export of technologies related to rare earth production, such as mining, smelting and sep ...

BEIJING (Reuters) -China tightened its rare earth export controls on Thursday, expanding restrictions on processing technology, unauthorised overseas cooperation and spelling out its intention to limit exports to overseas defence and semiconductor users. Exports of technology used to mine and process rare earths or make the associated magnets is barred without permission, the Ministry of Commerce said in a statement. Many of these technologies are already restricted and it was not immediately clear what t ...