Trade War: Electric Cars and Rare Earths

In response to U.S. tariffs, China has halted exports of these crucial minerals, putting several industries at risk, including the automotive sector. Rare earths, despite their name, are essential elements for the production of permanent magnets used in electric motors. Currently, China holds an almost complete monopoly over the extraction and processing of these resources, making the rest of the world dependent. This situation gives Beijing significant bargaining power, with potential repercussions for strategic sectors such as energy and defense, given the difficulty of quickly replacing such materials. Europe and the United States find themselves in a vulnerable position, as they are not among the main producers.