China’s rare earth export curbs could hit European auto sector

Published 14/10/2025, 15:16
China’s rare earth export curbs could hit European auto sector

Investing.com -- New Chinese restrictions on rare earth metal exports could significantly impact the European automotive industry as reserves of these critical materials are running low, according to a leading industry representative.

Roberto Vavassori, Chairman of Italian auto parts manufacturer association ANFIA, warned during an automotive conference in Milan on Tuesday that the situation has become more precarious compared to previous supply disruptions.

While manufacturers had previously managed to maintain production when China limited supplies in recent months, Vavassori noted that reserves of rare earth metals have now been depleted, leaving the industry more vulnerable to new export restrictions.

China is the world’s dominant producer and processor of rare earth elements, which are essential components in electric vehicle motors, catalytic converters, and various other automotive applications.

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