Published by Global Banking & Finance Review®
Posted on June 12, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleGerman engineering urges EU to pressure China on rare earths control due to supply bottlenecks, impacting global industries.
DUESSELDORF, Germany (Reuters) -German plant and equipment makers are increasingly struggling with supply bottlenecks for rare earths, the VDMA industry association warned and called on the European Union to put more pressure on China.
"We are already seeing that rare earths are no longer reaching our member companies," VDMA president Bertram Kawlath told journalists.
China, which controls over 90% of global processing capacity for rare earths used in everything from automobiles and fighter jets to home appliances, imposed restrictions in early April requiring exporters to obtain licenses from Beijing.
The tighter restrictions followed the opening of a trade war between the U.S. and China after President Donald Trump imposed tariffs on Chinese imports.
VDMA CEO Thilo Brodtmann said that a whole range of materials are affected by the bottlenecks, including nitrocellulose and germanium.
Brodtmann, who said China was using the measures to exert pressure, called for the EU to negotiate to resolve the blockade but also stressed that other suppliers needed to be found in the medium and long term.
If there are no other suppliers, the EU and the German government must negotiate with the Chinese at the highest level to lift the export restrictions, Kawlath said.
"We are also in competition with the U.S., which is currently keen to secure special rights to these products," added Kawlath.
U.S. and Chinese officials said on Wednesday that they had agreed to ease China's export restrictions on rare earths.
(Reporting by Tom Kaeckenhoff, writing by Miranda Murray, editing by Rachel More and Thomas Seythal)
The VDMA industry association warned that German plant and equipment makers are struggling with supply bottlenecks for rare earths, which are no longer reaching their member companies.
China imposed restrictions in early April requiring exporters to obtain licenses, which has tightened the supply of rare earths used in various industries.
Brodtmann called for the EU to negotiate with China to resolve the blockade and emphasized the need to find other suppliers in the medium and long term.
U.S. and Chinese officials agreed to ease China's export restrictions on rare earths, indicating a potential shift in the trade dynamics.
The bottlenecks affect a range of materials, including nitrocellulose and germanium, which are crucial for various applications.
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