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China's rare earth curbs put Europe's auto industry at risk, Italian lobby says
Published by Global Banking & Finance Review®
Posted on October 14, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 14, 2025
2 min readLast updated: January 21, 2026
China's rare earth export curbs threaten Europe's auto industry, warns ANFIA, as reserves dwindle, impacting electric motor production.
MILAN (Reuters) -Expected new Chinese curbs on rare earth metal exports could have a significant impact on the European auto industry, the head of Italian auto part maker lobby ANFIA said on Tuesday, as reserves of those materials are low.
Despite an agreement in July aimed at fast-tracking shipments to Europe, China has maintained tight control over rare earth exports and last week announced expanded curbs.
The country refines and processes the vast majority of the world's rare earths that are essential for industries including semiconductors, defence, and automotive manufacturing.
ANFIA Chairman Roberto Vavassori said manufacturers had been able to maintain production when China curbed supplies in previous months, but reserves of rare earth metals were now depleted.
That reserves' buffer "is not there anymore" Vavassori said during the ForumAutoMotive conference in Milan.
In the auto industry, rare earths are needed for electric motors and other vehicle components.
Vavassori said the rare earth metal industry was small, worth below $5 billion globally, but still in a position to slow down the whole global auto industry.
(Reporting by Giulio Piovaccari; editing by Barbara Lewis)
Rare earth metals are a group of 17 elements crucial for various technologies, including electronics, renewable energy, and automotive applications. They are essential for manufacturing components like electric motors.
The automotive industry encompasses the design, development, manufacturing, marketing, and selling of motor vehicles. It includes companies that produce cars, trucks, and their parts.
Supply chain management involves overseeing the flow of goods and services from suppliers to consumers. It includes managing logistics, inventory, and production processes to ensure efficiency.
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