[소재] China hits back at US tariffs with export controls on key rare earths

출처 : Reuters (2025.4.5)

출처 : Reuters

• Rare earth magnets to be covered by export controls
• Export controls cover all countries, not just US
• Manufacturers scrambling for access outside China
• China's move seen as opening salvo in U.S. trade spat

China placed export restrictions on rare earth elements on Friday('25.4.4.) as part of its sweeping response to U.S. President Donald Trump's tariffs, squeezing supply to the West of minerals used to make weapons, electronics and a range of consumer goods.

The move, which Beijing had long hinted was possible, further ratchets up trade tensions between the world's two largest economies and leaves American manufacturers scrambling for fresh supplies of the critical minerals they have relied upon for decades.

China produces around 90% of the world's rare earths, a group of 17 elements used across the defense, electric vehicle, energy and electronics industries. The United States has only one rare earths mine and most of its supply comes from China.

Beijing announced the controls late on Friday as part of a broader package of tariffs and company restrictions in retaliation for Trump's decision to hike tariffs against most Chinese products to 54%.

The export curbs include not only mined minerals but permanent magnets and other finished products that will be difficult to replace, analysts said.

The move, which affects exports to all countries, not just the U.S., is the latest demonstration of China's ability to weaponize its dominance over the mining and processing of the critical minerals.

 

Seven categories of medium and heavy rare earths, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium-related items, will be placed on an export control list as of April 4, according to a Ministry of Commerce release.

 

Lockheed Martin, Tesla and Apple are among the U.S. companies that use Chinese rare earths in their supply chains.

"China made that list strategically," said Mel Sanderson, a director at American Rare Earths (ARR.AX), which is building a Wyoming rare earths mine it hopes to open by 2029, and co-chair of the Critical Minerals Institute trade group. "They picked the things that are crucial for the U.S. economy."

 

While the export controls stop short of an outright ban, Beijing can throttle shipments by restricting the number of export licenses it issues.

China's move will create "a scramble for access to the limited sources of alternative supply – namely in Japan and South Korea," said Ryan Castilloux, founder of consultancy Adamas Intelligence.

'WILLING TO ESCALATE'

Two industry sources said Chinese export restrictions on some rare earths are a concern for some U.S. aerospace manufacturers because they are sole-sourced from China for use in avionics.

RTX and Honeywell declined to comment. Boeing and GE did not respond to requests for comment.

 

The U.S. government has stockpiles of some rare earths, but not enough to supply its defense contractors in perpetuity.

Beijing has already imposed outright bans on the export of three metals to the U.S. and slapped export controls on many others.

 

The moves to restrict heavy rare earths are especially important because China has even tighter control over these elements, said David Merriman at consultancy Project Blue.

"There is currently only one HREE (heavy rare earth element) focused operation outside of China, Myanmar and Laos," he said, adding that China has close involvement in supply chains from Myanmar and Laos.

That mine, Serra Verde in Brazil, ships minerals to China for processing, Merriman added.

"China is willing to escalate," said Nathan Picarsic, co-founder of the geopolitical consulting firm Horizon Advisory. "This is likely an opening salvo in an iterative game of negotiation with the U.S."

GALVANIZE WEST

China dominates the complex and dirty refining process for rare earths and controls output via a quota system that it has tightened.

Friday's move is likely to galvanize efforts in the West to build alternative supply chains, according to Mercator Institute for China Studies analyst Jacob Gunter. Progress toward that goal has been slow.

 

"It's going to take time," said Mark Smith, CEO of NioCorp Developments, which has permits for a $1.2 billion rare earths mine in Nebraska but needs financing. Shares of NioCorp fell 8.1% on Friday, while shares of USA Rare Earth, which is building a rare earth magnet facility in Oklahoma, jumped 20%. Shares of MP Materials - which owns the only U.S. rare earths mine and relies in part on China for processing - fell 10.1%.

Las Vegas-based MP said in a statement that China's move "reinforces what has long been clear: America must secure an end-to-end rare earth supply chain to protect its industrial and national security."

 

Massachusetts-based rare earths processing startup Phoenix Tailings, which recycles the metals from electronic waste and other sources, aims to boost its annual production from 40 metric tons today to 4,000 metric tons by 2027.

"China's moves just further encourages us to double down on our expansion plans," said Phoenix CEO Nick Myers.

For companies that buy equipment from rare earths industry suppliers, the worry is compounded that they may lose access to important machinery that is made in China.

"The real concern for us is whether this trade conflict grows further," said Wade Senti, president of Florida-based Advanced Magnet Lab.