Story perspectives

Auto Industry Faces Rare-Earth Shortage Crisis Ahead

6/11/2025

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Summary

Story summary

The auto industry may encounter a rare-earth element shortage similar to the chip crisis during the pandemic.
China dominates 92% of global rare earth processing and has introduced new export licensing rules.
U.S. companies face limited supplies, risking production halts without a trade agreement.
While alternatives to rare earths are available, they could affect performance.
Urgent negotiations between the U.S. and China are in progress to resolve this issue.

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Story summary

The auto industry may encounter a rare-earth element shortage similar to the chip crisis during the pandemic.
China dominates 92% of global rare earth processing and has introduced new export licensing rules.
U.S. companies face limited supplies, risking production halts without a trade agreement.
While alternatives to rare earths are available, they could affect performance.
Urgent negotiations between the U.S. and China are in progress to resolve this issue.