⚙️ China’s Rare Earth Export Curbs Threaten Europe’s Auto Industry, Italian Lobby Warns
Expected new restrictions on Chinese rare earth metal exports could heavily impact the European automotive sector, according to the head of Italy’s auto parts association ANFIA. The warning comes as reserves of these critical materials have reached dangerously low levels.
Despite a July agreement meant to speed up shipments to Europe, China has continued to maintain strict export controls and last week announced even broader restrictions.
China currently refines and processes the majority of the world’s rare earth elements, which are essential for key industries such as semiconductors, defense systems, and electric vehicle production.
🚗 Reserves Running Low
Roberto Vavassori, chairman of ANFIA, said that while manufacturers managed to sustain production during previous supply slowdowns, current reserves of rare earths are nearly exhausted.
“That buffer is no longer there,” Vavassori said during the ForumAutoMotive conference in Milan.
In the automotive industry, rare earth metals play a crucial role in electric motors and other advanced vehicle components, making the latest export curbs particularly concerning.
🌍 A Small Industry With Big Global Impact
Vavassori emphasized that while the rare earth metals market remains relatively small — valued at under $5 billion globally — it holds the power to disrupt the entire global automotive supply chain if shortages continue.
As Europe races to expand electric vehicle production and reduce reliance on fossil fuels, growing supply pressure from China could slow progress and heighten costs for carmakers across the continent.
