In April 2025, China imposed new export restrictions on seven critical mid-to-heavy rare earth elements—samarium (Sm), gadolinium (Gd), terbium (Tb), dysprosium (Dy), lutetium (Lu), scandium (Sc), and yttrium (Y). The move disrupted global supply chains, hitting the automotive and electronics industries hardest.

Beijing has granted a limited number of rare earth export licenses, including to suppliers of the top three US automakers, in a bid to ease rising global supply-chain pressure ahead of high-level US-China trade talks scheduled for June 9 in London. China's Ministry of Commerce confirmed on June 7 that it had approved certain applications but did not specify the countries or sectors involved. It acknowledged the increasing demand for rare earths in robotics and electric vehicles and said reviews of additional qualifying applications would continue.