China's Rare Earth Curbs Threaten European Auto Production
10/14/2025, 7:01:33 PM | China | European Union
Automotive
Expanded Chinese rare-earth export controls have depleted European auto-sector buffers and could disrupt EV motor production, ANFIA warns.
MILAN — Expected new Chinese curbs on rare earth metal exports are raising alarms across Europe's auto supply chain, industry representatives said. China dominates refining and processing of the rare earths used in electric vehicle motors and other automotive components; recent measures to tighten exports and an expanded set of controls announced last week have thinned downstream inventories. Roberto Vavassori, chairman of Italian auto parts lobby ANFIA, said producers coped with earlier supply disruptions but have now run down their buffers. "That reserves' buffer is not there anymore," he warned at the ForumAutoMotive conference in Milan. A July agreement aimed to fast-track shipments to Europe, but tight Chinese controls have persisted. Even though the global rare earth sector is relatively small — valued below $5 billion — constrained flows of materials such as neodymium and lanthanum could slow electric motor production and wider vehicle manufacturing. Supply diversification and stockpiling are likely to climb up manufacturers' priority lists as Europe assesses short-term production risks and longer-term sourcing strategies.