The EU has raised alarms over severe disruptions caused by China’s rare earth export restrictions, which have slashed supplies to key industries, including auto manufacturing. Exports to Germany halved in April,

Some European auto parts plants have suspended output and Mercedes-Benz is considering ways to protect against shortages of rare earths, as concerns about the damage from China's restrictions on critical mineral exports deepen.

China views its rare earths as a national security issue, not a trade one, and that’s why Beijing is unlikely to loosen controls any time soon, experts say.