China’s export restrictions on rare earth elements and magnets have sparked widespread concern among global manufacturers, including Ford and other major automakers. The move has highlighted the world’s reliance on China’s mineral supply chain and its dominance in producing rare-earth magnets used in various industries.
The Australian government believes it can help break China’s grip on the market by developing domestic capabilities to manufacture rare-earth products. However, experts warn that the challenge is enormous and requires a significant boost in investment in skills, education, and technology.
Australia is rich in resources and has been actively pursuing development of its own rare earths sector. The government has offered grants and funding to encourage domestic processing capabilities, with projects like Iluka’s Eneabba project and Lynas’ refining operations underway.
However, critics argue that the current strategy falls short of developing an end-to-end supply chain in Australia, independent of China. There is also limited discussion on the potential for magnet recycling in the country.
As global manufacturers face uncertainty due to China’s export restrictions, Australia sees an opportunity to partner with overseas producers and integrate into emerging magnet manufacturers. Experts emphasize the need for a coordinated approach to address the shortage of rare earth magnets and mitigate the impact on industries worldwide.
Source: https://www.theguardian.com/australia-news/2025/jun/07/china-has-a-stranglehold-on-the-worlds-rare-earths-supply-chain-can-australia-break-it