In July 2024, China enforced a sweeping ban on exports of key rare earth metals like gallium and germanium, citing national security. The move, seen as retaliation to US tech sanctions and trade tariffs under President Trump, has disrupted global supply chains. Industries dependent on rare earths—from EVs to missiles—face price spikes and uncertainty, while countries scramble to diversify sourcing.

BulletsIn

• China banned exports of key rare earth metals from July 2024, citing security, sovereignty
• Gallium, germanium among metals blocked; vital for semiconductors, EVs, military tech
• Move seen as retaliation to US tariffs, tech export controls under Trump’s 2025 return
• US, EU, Japan heavily reliant on China for rare earths; now face supply shocks
• Prices surged: gallium +18%, germanium +12% after ban; firms began stockpiling
• China dominates 70% global rare earth output, holds edge in processing tech
• Exporters now need special licences; delay or halt in global shipments likely
• EU, US fund local mines, recycling; but new facilities take years to scale up
• Environmental, ethical issues cloud expansion in Africa, Asia, South America
• Strategic shift: trade tools now used as geopolitical weapons, deepening tech divide