China’s Rare Earth Curbs Cut Magnet Exports 75%, Disrupting Supply Chains

China’s rare earth export restrictions led to a 75% drop in magnet exports over two months, forcing automakers worldwide to halt production, Reuters reported. Beijing imposed the restrictions in April as a retaliatory measure for U.S. tariffs. The move backfired on Chinese magnet producers, who were already struggling with weak domestic demand and an economic slowdown. Beijing and Washington announced a deal in June to restore supply chains, but experts say implementation will take time, and damage to producers is already extensive. Small- and medium-sized magnet makers cut production by 15% in April and May, and share prices slumped before rebounding without clear fundamentals. Analysts expect further industry consolidation, particularly as companies face customized products that can’t be easily resold domestically and rising inventory levels.