July 7 (Reuters) - China's export restrictions on rare earths brought parts of the global auto supply chain to a halt and U.S. President Donald Trump to the negotiating table. But at home, they're a big headache for companies already struggling with a slow economy.

In the chaos of war, there’s nothing to stop Chinese firms from ravaging the landscape and extracting the minerals, which end up in China.

A recent assessment by Australian firm Earth Rarest estimated that Australia could supply up to 20 per cent of global demand for neodymium and praseodymium, but warned that a full replacement of Chinese supply across all 17 rare earth elements remains unlikely in the near term.

Union Minister for Coal and Mines G Kishan Reddy acknowledged India’s past reliance on China for critical rare earth supplies.

Despite a 90-day truce in its trade war with the United States, China appears to be maintaining tight control over its rare earth exports – preserving a key source of leverage in future ...

Further bolstering domestic priorities, state-run IREL (India) Limited was directed in June 2025 to suspend a 13-year-old export agreement with Japan, redirecting rare earth supplies for local use to reduce reliance on Chinese imports. Also Read: '2026 Election Will Be Fought To Form A BJP-Led NDA Government': Amit Shah In Kerala

China’s move to impose strict export controls on rare earth elements used in auto manufacturing has reportedly sparked fears of potential shortages of cars. Earlier this month, Chinese President ...