Spot on Kop, China’s weaponization of rare earths and related export restrictions since April 2025 have already affected a vast number of companies and original equipment manufacturers (OEMs) across the West, particularly in automotive, defence, electronics, and energy industries.
Major global OEMs—including General Motors, Ford, Tesla, BMW, Mercedes-Benz, and others—are directly affected. These companies rely on rare earth magnets for electric motors, braking systems, and numerous electronic components.
Tier-1 and Tier-2 Suppliers:Hundreds of automotive suppliers, such as ZF and BorgWarner, have already experienced production halts or slowdowns due to supply shortages
US Defence Systems:The US Department of Defence identified 750 military systems relying on Chinese-sourced heavy rare earths, including major platforms like the F-35, Stryker vehicles, and advanced missile systems
China’s weaponization of rare earths has affected hundreds of Western OEMs and thousands of suppliers across automotive, defence, electronics, and energy sectors. The disruption is global and systemic, with production halts, delayed launches, and critical vulnerabilities now exposed in supply chains throughout the West,
Great News For Western RE Sector, Western suppliers such as Ionic Technologies can command premium prices for their rare earth oxides (REOs) because they offer traceability, sustainability, and supply chain security—attributes that are increasingly valued by governments, OEMs, and end users in the West.
China’s position in rare earths is best described as a supply monopoly, giving it outsized influence and control over global markets, pricing, and access to these critical materials, Who wants that to continue in the future!
IXR Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
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