Rare‑Earths Pressure Grows
European firms are rethinking operations over Beijing's rare‑earth export controls while the U.S. and EU explore coordinated strategies to reduce dependence on Chinese critical minerals. (channelnewsasia.com) China has signalled temporary stability on exports but kept prices high, with a domestic miner raising concentrate prices and state reports of large new deposits. (rareearthexchanges.com) (mining-journal.com) (indiandefencereview.com)
European companies in China are redrawing supply plans after Beijing’s rare-earth export controls turned a key industrial input into a strategic risk. (channelnewsasia.com) Jens Eskelund, president of the European Union Chamber of Commerce in China, said on April 14 that the licensing system had been “slow, unpredictable and opaque,” and that some companies were now reassessing whether parts of their production should stay in China. (channelnewsasia.com) Rare earths are a group of minerals used in magnets, motors, electronics and defense equipment, and China dominates both mining and, more importantly, processing. The European Parliament said China imposed two waves of export controls in April and October 2025, with the second wave suspended until November 2026. (europarl.europa.eu) Washington and Brussels are now moving closer to a joint response. Bloomberg reported on April 10 that the United States and European Union were nearing an action plan on critical minerals that would cover standards, investment, joint projects and coordination during supply disruptions. (bloomberg.com) The immediate pressure is not only about permits. China Northern Rare Earth Group said on April 10 that its second-quarter 2026 rare-earth concentrate price would rise to 38,804 yuan per tonne, about $5,390, up 44.6 percent from the first quarter. (mining.com) That means buyers are facing a market where export rules have eased in some areas but input costs are still climbing. The European Chamber’s warning came after months of trade tension in which rare earths moved from a niche commodity into a boardroom issue for carmakers, machinery groups and defense suppliers. (channelnewsasia.com) Beijing is also signaling that its domestic resource base remains deep. State media reported on March 24 that new exploration in Maoniuping, Sichuan, found 9.6656 million tons of rare-earth oxides, plus 27.1354 million tons of fluorite and 37.2277 million tons of barite. (people.cn) Chinese officials and state outlets have framed the controls as a national-security tool and the new Sichuan discovery as support for long-term supply. European industry groups, by contrast, say the bigger problem is that a permit can become a policy lever with little warning. (europarl.europa.eu)
