5 hours Ago
China is imposing new export controls on several rare earth elements and related products that are crucial components for defense and technology, and have become a focal point for US President Donald Trump. The controls announced Friday are expected to have broad impacts on US companies because the elements are used in optical lasers, radar devices, high-powered magnets for wind turbines, jet engine coatings, communications and other advanced technologies. China is the world’s dominant supplier of the rare earths and is responsible for almost 70% of global production, according to estimates by the US Geological Survey.
China accounted for 70% of US imports of rare earth compounds and metals from 2020 to 2023, the USGS said. The restrictions could create a severe supply chain bottleneck for European offshore wind turbines, as well as those to be deployed in the US, said BloombergNEF analyst Oliver Metcalfe. “The European offshore wind industry could be caught in the crossfire of these retaliatory actions of China toward the US,” he said.
The US relies heavily on Europe for offshore wind components, particularly generators. BNEF estimates offshore wind turbines use almost four times the amount of rare earths per unit of installed capacity as onshore turbines. Given China’s dominance, Western nations are looking to diversify their supply chains.
Trump has homed in on the mineral riches of Greenland, mooting a potential takeover of the Danish territory. He’s also expressed a desire to arrange a supply deal with Ukraine. The list of rare earths announced Friday includes samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium.
Last year China imposed limits on germanium and gallium. ©2025 Bloomberg L.P.
This article was generated from an automated news agency feed without modifications to text..
