
June 10, 2025
DY6 Metals Ltd (ASX: DY6, “DY6” or “Company”) is pleased to announce the initial results from the reconnaissance exploration program at the Central Rutile Project, Cameroon. Desktop studies incorporating detailed geological mapping, geophysics, and known mineral occurrences, were used to define initial, high priority targets for ground-truthing. The reconnaissance programme, which consisted of auger sampling, road-cutting channel sampling, soil sampling and stream sediment sampling, was successful in identifying heavy mineral (HM) and natural rutile mineralisation across all five tenements that make up the Central Rutile project. Rutile nuggets, ranging in size from 1mm+ to 2cm+, were observed in alluvial and eluvial (residual) sources. Samples collected from the initial exploration programme are currently being prepped for dispatch to the Company’s laboratory for analysis in South Africa, with results expected in August 2025.
HIGHLIGHTS
- Reconnaissance auger and grab sampling programme nearing completion at the Central Rutile Project, with a detailed soil sampling programme to commence shortly
- Soil sampling programme will be used to rapidly identify areas of higher grade HM and rutile mineralisation, which will be followed up on with a large auger drilling campaign in the September quarter
- Reconnaissance sampling undertaken across the 5 Central Rutile Project tenements has identified visible natural rutile from both alluvial and eluvial (residual) sources
- The identification of rutile across the entire tenement package is highly encouraging and reaffirms the Company’s belief that the region is an emerging, globally significant rutile province
- Samples collected from the reconnaissance program are due to be submitted for laboratory analysis in the coming weeks, with results expected in the September quarter
- The Company’s reconnaissance program at the Douala Basin HMS Project is ongoing, with initial results expected in the coming weeks
Non-executive Chairman, Dan Smith, commented:
“The in-country team has done a great job of mobilising to site so quickly. We are pleased with the initial results from the reconnaissance program at the Central Rutile project and the confirmation of widespread, natural rutile across the licences from both residual and alluvial sources. I look forward to the receipt of the assays in the coming months, as well as results from the ongoing exploration at the Douala Basin project.”
Technical Consultant, Cliff Fitzhenry, commented:
“The Central Rutile project covers a large (2,140km2) area, so this initial reconnaissance programme has only just scratched the surface of the potential for this area. We always knew the licences were in the right address, having the correct underlying geology, deep in-situ weathering profile, and known, historic rutile occurrences. The solid work of the in-country team, in conjunction with our Senior Exploration Geologist, Troth Saindi, is already paying dividends. Having achieved our initial goals, exploration at the Central Rutile project will shift from reconnaissance in nature to that of a detailed soil sampling programme. This will allow us to achieve greater coverage over the tenement package and will help to rapidly define zones of higher grade heavy mineral occurrences, which will be followed up with a large-scale auger sampling programme.
I am excited to get on the ground as soon as possible to help drive the exploration work as the project story unfolds.”
Reconnaissance exploration at the Central Rutile Project
As announced on 5 June 2025, the Company has commenced reconnaissance auger and grab sampling programmes at the Central Rutile and Douala Basin HMS projects, Cameroon. To date, at the Central Rutile Project the Company has completed 3 auger drill holes (refer Figure 1), collecting 10 samples in the process, as well as collected 42 channel samples from 7 road cutting exposures, 1 surface grab sample and 2 stream sediment samples for analysis (refer Tables 1-4).
Click here for the full ASX Release
This article includes content from DY6 Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
DY6:AU
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24 July 2024
Quarterly Activities Report for the Period Ended 30 June 2024
Heavy rare earths and critical metals explorerDY6 Metals Ltd (ASX: DY6) (“DY6”, “the Company”) is pleased to present its quarterly activities report for the June 2024 quarter.
Tundulu (REE)
- Historical high-grade drill intercepts reported at Tundulu including1:
- 101m @ 1.02% TREO, 3.6% P2O5 from surface (TU030)
- 109m @ 1.06% TREO, 3.7% P2O5 from 53m (TU035)
- 100m @ 1.09% TREO, 12.6% P2O5 from 30m (TU042)
- 97m @ 1.35% TREO, 14.4% P2O5 from surface (TU050)
- 91m @ 1.09% TREO, 7.6% P2O5 from 46m (TU026)
- Formal granting of licence area for the Tundulu Project awarded by the Malawian Department of Mines
- Engagement of Met Chem Consulting for initial metallurgical evaluation to review historical testwork work programs and assess the findings from the 2017 metallurgical report
- Trench sampling program (~150kg sample) at historic trench TUTR10 at Nathace Hill completed as part of initial met test work program
Machinga (HREE & Nb)
- Sampling program consisting of a total of 727 rock chips and soil samples completed into recently granted licence area at Machinga. Rock chips returning up to 3.22% TREO and up to 0.75% Nb2O5
- Two anomalies west of the main road of the newly granted licence show a much more continuous character of higher TREO results - highlighting the scale potential of REE mineralisation in this new area of the licence. Assays will assist in refining targets ahead of next phase of drilling.
Ngala Hill (PGE, Cu & Ni)
- Targeted reconnaissance sampling program at Ngala Hill PGE, Cu & Ni Project underway
- 3 key target zones of palladium rich Pd+Pt+Au+Cu mineralisation have been identified from historical trenching and limited drill testing
- DY6 will undertake a rock chip and soil sampling program to follow up on known high grade areas as well as aiming to expand the zone of mineralisation
Click here for the full ASX Release
This article includes content from DY6 Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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02 July 2024
Reconnaissance Sampling Program Commences at Ngala Hill PGE Project to Follow up Historical Targets
DY6 Metals Ltd (ASX: DY6, “DY6” or the “Company”), a strategic metals explorer targeting Heavy Rare Earths (HREE) and Niobium (Nb) in southern Malawi, is pleased to report it is preparing for commencement of a reconnaissance program at the Company’s highly prospective PGE project at Ngala Hill in southern Malawi. The Company has commenced community engagement with local community members at the project site with the purpose to facilitate awareness of the exploration program planned by DY6.
HIGHLIGHTS
- Targeted reconnaissance sampling program commences at DY6’s highly prospective PGE, Cu & Ni project at Ngalla Hill, Southern Malawi
- At Ngala Hill, 3 key target zones of palladium rich Pd+Pt+Au+Cu mineralisation have been identified from historical trenching and limited drill testing
- DY6 will undertake a rock chip and soil sampling program to follow up on known high grade areas as well as aiming to expand the zone of mineralisation
- No significant modern exploration including electromagnetics (EM) to target massive sulphides has been undertaken at Ngala Hill
- Trenching by Placer Dome in 2000 included results of:
- 12m at 3g/t PGE+Au; and
- 70m at 1.12g/t PGE+Au, including 8m at 3.3g/t PGE+Au
- The main mineralised zone has only had limited modern drilling
The Company’s CEO, Mr Lloyd Kaiser said:“Our team in Malawi has actively built strong relationships with local communities across our projects and this early engagement at Ngala Hill is setting the foundation between the Company and the community as we prepare to mobilise the geo team and embark on our first exploration campaign at Ngala.”
Figure 1: Location of the Ngala Hill PGE Project in southern Malawi
Background on the Project
The Ngala Hill ultramafic chonolith is an arcuate-shaped intrusion, with dimensions of approximately 2.4km by 0.7km and was intruded into the underlying Proterozoic Basement Complex gneisses. The Ngala Hill Project is characterised by an intrusive ultramafic suite of pyroxenites and hornblende- pyroxenites that intrude basement gneisses. The pyroxenite facies of the ultramafic complex is prospective for platinum group elements (PGEs), predominantly palladium, and associated copper.
Initial work at Ngala Hill in the late 1960s included geochemical sampling programs undertaken by the British and Malawian Geological Surveys. Phelps Dodge started an exploration program for PGEs on Ngala Hill in 1999 with approximately 600 m of trenching. Metapyroxenite and amphibolite with an PGE- gold-copper nickel association was intersected trenching and yielded 1.41g/t Pt+Pd+Au and 1,430 ppm Cu over a length of 64m.
In 2000, Placer Dome confirmed further anomalies with encouraging results received from several trenches including 12m at 3g/t PGE+Au and 70 m at 1.12g/t PGE+Au, including 8m at 3.3g/t PGE+Au.
Click here for the full ASX Release
This article includes content from DY6 Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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29 June 2023
Heavy Rare Earths & Niobium Explorer DY6 Metals Lists On ASX Following Successful $7M IPO
Heavy rare earths and niobium explorer DY6 Metals Limited (ASX: DY6) (“DY6”, “the Company”) is pleased to announce that its shares will begin trading on the Australian Securities Exchange at 9am Perth today.
- $7 million successfully raised via IPO, including $2.5 million from Hong Kong- based cornerstone investors, Zhenshi Group and Zhung Nam New Material Company
- Funds to be used for exploration on three 100%-owned rare earths and critical metals projects in southern Malawi
- Malawi is an attractive and stable mining jurisdiction with proven potential for hosting major rare earth deposits including Lindian Resources’ world class Kangankunde discovery (40km east of the Company’s Machinga Project)
- RC drilling is already underway at the flagship Machinga project, with diamond drilling scheduled to commence next month
- Drilling aims to follow up high grade 2010 results by Globe Metals and Mining (ASX:GBE)§Machinga is enriched in heavy rare earths (Dysprosium and Terbium) and Niobium
DY6’s listing follows a successful initial public offering (IPO), which raised $7 million. As part of this, the Company attracted a combined $2.5 million from Hong Kong-based strategic investors, Zhensi Group (HK) Heshi Composite Materials Co., Limited and Zhung Nam New Material Company Limited.
The funds raised in the IPO will be used primarily for exploration at the Company’s three 100%-owned rare earths and critical metals projects located in southern Malawi, a stable and attractive African jurisdiction with proven potential for hosting major mineral deposits.
DY6 has recently commenced a 5,000m program of reverse circulation and diamond drilling at the flagship Machinga project, only 40km east of Lindian Resources’ Kangankunde carbonatite discovery, which is widely regarded as the world’s best undeveloped rare earths project.
Machinga is particularly enriched with high-value heavy rare earth elements dysprosium and terbium. The project also holds significant niobium and tantalum potential as well.
Non-executive Chairman Dan Smith said: “DY6 has recently started its maiden drill program at the exciting Machinga project. In addition to being a potential source of the critical heavy rare earth elements Dysprosium and Terbium, Machinga also contains significant Niobium mineralisation.
The Company is seeking to emulate the success of Lindian Resources in proving up a major critical minerals project in southern Malawi. We believe the projects and the team we have assembled provide us with an excellent opportunity.”
Image 1: RC Drilling underway at Machinga HREO + Nb Project
Six targets have been identified to date within the Machinga North concession and the Company will be following up on previous high grade intercepts from a previous 2010 campaign undertaken by Globe Metals and Mining (ASX:GBE).
DY6’s other projects in southern Malawi, Salambidwe and Ngala Hill, have also been subject to previous exploration: rock chips from Salambidwe returned high grade values of TREO and Nb while soil samples from Ngala Hill and limited previous drilling by Phelps Dodge returned high grade results of Pd, Pt, Au and Cu.
The Company plans to carry out detailed geophysical and geological sampling programs at Salambidwe to aid in defining targets for a maiden drilling campaign towards the end of the year. RC drilling at Ngala Hill is scheduled for around the same time.
Click here for the full ASX Release
This article includes content from DY6 Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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11 June
Change of Director's Interest Notice (T Sage)
10 June
Hyundai Builds Rare Earths Stockpile to Offset Supply Risks
As global automakers brace for fallout from China’s tightening grip on rare earths exports, Hyundai Motor (KRX:005380,OTC Pink:HYMTF) appears to have quietly positioned itself ahead of the curve.
According to Reuters, a source familiar with the matter said on a recent investor call that the auto giant has stockpiled enough rare earth materials to maintain uninterrupted electric and hybrid vehicle production for about a year. The strategic stockpile should buy Hyundai critical time as supply chains buckle under mounting geopolitical tension.
China’s April decision to restrict exports of seven rare earths — a move requiring producers to obtain government licenses — has sent shockwaves through the auto, aerospace and semiconductor industries, particularly in the west.
But Hyundai, the world’s third largest automaker alongside affiliate Kia (KRX:000270), reportedly boosted its reserves during a brief window of relaxed Chinese controls, as per the source quoted by Reuters.
The Hyundai investor relations official reportedly told call participants that the company has “far more wiggle room” than rivals, citing successful procurement diversification and proactive inventory buildup.
Hyundai declined to confirm on inventory specifics in a public statement, but told Reuters, “We continuously evaluate market conditions to ensure operational stability and maintain a diversified global supply chain.”
Hyundai’s preparedness stands in contrast to the scramble now engulfing US and European manufacturers. Several major European suppliers have already reported production disruptions linked to delayed rare earths deliveries.
“We’re gradually coming into a very, very critical moment whereby those stocks are now being exhausted,” said Jonathan O’Riordan, international trade director at the European Automobile Manufacturers’ Association, in a Monday (June 9) interview with CNBC. “We are potentially going to see production stoppages.”
The rare earths crunch has become a central issue in US-China trade negotiations, which resumed on Monday in London and were set to continue Tuesday (June 10) morning, with Washington pushing for firmer guarantees.
Delegations led by Chinese Vice Premier He Lifeng and US officials — including Secretary of Commerce Howard Lutnick, Secretary of the Treasury Scott Bessent and Trade Representative Jamieson Greer — convened at Lancaster House in a bid to stabilize relations that have deteriorated beyond tariffs into critical minerals and tech controls.
The talks follow a May 12 truce that paused most of the 100-percent-plus tariffs both countries had imposed. However, since then, the US has accused China of “slow-walking” commitments, particularly regarding rare earths shipments.
US President Donald Trump, who last week spoke directly with Chinese President Xi Jinping, appeared optimistic on Monday, telling reporters at the White House, “We're doing well with China. China's not easy.”
He added, “We're going to see,” when asked about lifting rare earths restrictions.
Kevin Hassett, Trump’s economic advisor, said the US is seeking a “handshake” agreement on resumed rare earths shipments, signaling that the mineral supply chain has now taken center stage in the global trade war.
For its part, China over the weekend appeared to open a narrow diplomatic path, announcing a “green channel” to fast track rare earths export licenses to select European Union firms. The country's Ministry of Commerce also confirmed that it has quietly granted licenses to Chinese suppliers servicing major US automakers.
It remains unclear whether Hyundai’s buffer includes inventory held by its suppliers, or how the company may choose to ration usage in the event of further disruptions. Nonetheless, the South Korean firm’s ability to maintain stable production offers temporary reassurance for a jittery global auto market.
As trade talks continue in London, the question isn’t whether China will remain central to rare earths — it’s whether any other nations can afford to remain dependent.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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10 June
Recycling Rare Earths: Path to Securing North American Supply Chains
Recycling materials has been a widely established process to promote sustainability and reduce carbon footprint. Now, thanks to both technology innovation and an increasing global sentiment toward resource resilience and security, this well-known process is carving a niche in the critical minerals space.
The global shift toward clean energy and advanced technologies is driving unprecedented demand for rare earth elements (REEs), yet the US remains almost entirely dependent on foreign sources, particularly China, for its supply. As the risks of this reliance grow more apparent, both industry and government are turning to recycling as a scalable, lower-impact solution to secure domestic access to these strategic materials.
Supply challenges
The rare earth supply chain is one of the most geopolitically concentrated in the world.
As of 2023, China accounted for nearly 90 percent of the global refined output of rare earth elements and dominates downstream magnet manufacturing capacity. This dominance poses significant supply chain and national security risks. According to the US Department of Energy, a disruption in REE supply would have a disproportionate impact on high-tech and defense sectors that rely on materials like neodymium and dysprosium.
Rare earth magnets, particularly neodymium-iron-boron (NdFeB) types, are central to an increasingly wide array of technologies. In addition to their well-known applications in electric vehicles, wind turbines and military systems, they are also vital to the high-performance motors and cooling systems used in artificial intelligence (AI) infrastructure.
As demand for AI models and cloud computing surges, so does the need for hard disk drives as well as more efficient data centers, which rely on REE-powered components for energy efficiency and reliability. Consumer electronics, robotics, medical imaging devices and industrial automation systems also depend on these magnets to operate at high precision and speed. This broad dependency underscores why rare earths are not only an industrial necessity but also a strategic economic asset.
Recognizing the REE supply imbalance, the US government has prioritized rare earths as part of its critical minerals strategy, with policy initiatives aimed at supporting domestic production, recycling and innovation.
Beyond mining: Resilience through recycling
While new rare earth mining projects are in development across North America, they face well-known challenges: long permitting timelines, high capital costs and environmental concerns.
A report from the Harvard International Review indicates traditional mining of REEs often produces up to 2,000 tons of toxic waste per ton of extracted material. Recycling mitigates these impacts by reducing the need for new mining operations, thereby preserving ecosystems and decreasing carbon emissions. Innovative recycling methods have emerged as more sustainable alternatives, not only recovering valuable materials but also minimizing environmental harm.
Recycling and recovery of rare earths from end-of-life products offer a faster, more sustainable route to building domestic capacity. Establishing domestic recycling facilities enhances economic resilience by reducing reliance on imported REEs, particularly from dominant suppliers like China. Such initiatives contribute to job creation and stimulate local economies. Moreover, recycling supports a circular economy by reintroducing materials into the supply chain, reducing waste and promoting sustainable resource utilization.
Recent technological developments have made rare earth magnet recycling more viable. For instance, the use of copper salts in leaching processes has achieved recovery rates of up to 98 percent for certain REEs. Additionally, the selective extraction-evaporation-electrolysis process offers efficient separation and recycling of REEs from end-of-life magnets. The magnet-to-magnet approach — where spent magnets are processed into new ones without reverting to individual metal oxides — has gained traction due to its efficiency and lower carbon footprint. These advancements facilitate scalability, enabling broader adoption of recycling practices.
Several companies in North America and Europe are currently in various stages of advancing rare earth magnet recycling technologies, contributing to a more sustainable and resilient supply chain.
Supporting American critical minerals independence
One company gaining investor attention in this space is Vancouver-based CoTec Holdings (TSXV:CTH).
Through a joint venture with HyProMag USA, CoTec is bringing to market an innovative recycling method for rare earth magnets. The technology, known as Hydrogen Processing of Magnet Scrap (HPMS), was originally developed by researchers at the University of Birmingham.
This process uses hydrogen to break down and extract rare earth magnet alloy powders from end-of-life products, such as hard drives and electric motors, without the need for high-temperature smelting or acid-based leaching. Compared to traditional recycling methods, HPMS is energy-efficient, low-emission and scalable, enabling recovery of high-purity metalized magnet material while significantly reducing environmental impact. Because the extracted powder can be directly reused to produce new magnets — entirely within the US — the technology also eliminates the need to ship materials overseas for refining and metallization, cutting costs and reducing supply chain vulnerability.
HyProMag USA completed an independent feasibility study and ISO study of its carbon impact last year. The feasibility study, released in November 2024, is targeting a total annual production capacity of 1,041 tons of recycled NdFeB magnets over a 40 year operating life, post-tax net present value of US$262 million at current market prices, increasing to US$503 million at independent forecast prices. HyProMag USA is eyeing 10 percent of USA’s domestic demand for NdFeB magnets within five years of commissioning, with three plants targeting ~3,000 tons of recycled NdFeB magnets, which is three times what was contemplated in the November 2024 feasibility study.
CoTec owns 60.3 percent of HyProMag USA, including a 50 percent direct stake and an indirect interest through its 20.6 percent ownership in Maginito, HyProMag’s other JV partner. The company is building a rare earth magnet recycling facility in the Texas Dallas-Fort Worth area, positioning it to serve US manufacturing and defense industries.
This recycling-based approach not only supports US supply chain resilience but also provides investors with exposure to a lower-risk, ESG-aligned critical minerals strategy.
Investor takeaway
As demand for clean energy and digital technologies accelerates, rare earth materials will remain a strategic priority. While domestic mining plays a role, recycling technologies like HPMS offer near-term solutions to build secure, sustainable and traceable supply chains. Companies innovating in this space — particularly those that can scale effectively in North America — may benefit from rising demand, policy support and long-term structural tailwinds.
For investors, understanding the rare earth ecosystem, including its geopolitical risks and technical innovation pathways, will be essential in identifying resilient opportunities amid the energy transition.
This INNspired article is sponsored by CoTec (TSXV:CTH,OTCQB:CTHCF) This INNspired article provides information which was sourced by the Investing News Network (INN) and approved by CoTecin order to help investors learn more about the company. CoTec is a client of INN. The company’s campaign fees pay for INN to create and update this INNspired article.
This INNspired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with CoTec and seek advice from a qualified investment advisor.
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10 June
Eclipse Metals Completes $2M Oversubscribed Placement at Market Price to Advance 89Mt Grønnedal Rare Earth Project
Eclipse Metals Limited (ASX: EPM) (Eclipse or the Company) is pleased to advise that it has received firm commitments to raise $2 million (before costs) through a placement to institutional, professional, and sophisticated investors (Placement). The Placement was strongly supported, and the Company has accepted $2 million in line with its strategic funding objectives. Allocations were scaled back accordingly.
Highlights
- Firm commitments received to raise $2 million via an oversubscribed Placement conducted at no discount to the last traded price of $0.015
- Placement was cornerstoned by an existing shareholder with a $500,000 commitment
- Proceeds to advance environmental and exploration programs at Ivigtût and Grønnedal
- Supports evaluation of historical drill core and definition of new drill targets
- Reinforces Eclipse’s strategic role in the global rare earth supply chain
The Placement was cornerstoned by a supportive existing shareholder, who subscribed for $500,000, reflecting continued confidence in Eclipse’s long-term strategy and the potential of its Greenland assets.
The Placement follows the Company’s recent announcement of an 89 million tonne Mineral Resource Estimate at the Grønnedal rare earth element (REE) deposit in southwest Greenland. Investor interest reflects recognition of the scale and quality of this resource, as well as the broader critical minerals potential of the project.
Under the Placement, Eclipse will issue 133,333,333 fully paid ordinary shares at an issue price of $0.015 per share. In addition, 33 million unlisted options (Options) will be issued to the Lead Manager, exercisable at $0.03 each and expiring two years from the date of issue.
Placement funds raised will be used for the following:
- Exploration and resource expansion drilling at the Grønnedal rare earth element (REE) prospect
- Environmental baseline and remediation planning at the historic Ivigtût pit
- Assessment and mineralogical analysis of historical drill core to enhance geological understanding
- General working capital and costs associated with the Placement
The Placement will be undertaken within the Company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A and will not require shareholder approval.
Peak Asset Management acted as Lead Manager to the Placement.
Click here for the full ASX Release
This article includes content from Eclipse Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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09 June
China Eases Rare Earths Grip, Grants US, EU Auto Giants Fast Track Licenses
China has moved to ease its export chokehold on rare earths, with its Ministry of Commerce announcing over the weekend that it will establish a “green channel” to fast track rare earths export licenses to select EU firms.
The announcement follows high-level trade talks in Paris between Chinese Minister of Commerce Wang Wentao and European Commission Vice President and Trade Commissioner Maroš Šefčovič, CNBC reported.
A ministry spokesperson stated that China hopes the EU will take “reciprocal steps” to promote “compliant trade of high-tech products with China.” The diplomatic overture also extends to US firms.
According to Reuters, China has quietly granted export licenses to suppliers working with American auto giants General Motors (NYSE:GM), Ford (NYSE:F) and Stellantis (NYSE:STLA) — manufacturer of Jeep, Dodge, Fiat and Peugeot.
The rare earths reprieve could not come soon enough for the auto industry. Following China's April imposition of export restrictions on several critical rare earth elements — used in everything from electric motors to fuel injectors — industry groups warned that stockpiles were dwindling rapidly, with risks of assembly line stoppages looming.
Jonathan O’Riordan, international trade director at the European Automobile Manufacturers’ Association (ACEA), told CNBC on Monday (June 9), “We’re gradually coming into a very, very critical moment whereby those stocks are now being exhausted, and we are potentially going to see production stoppages.”
The ACEA had expressed alarm over licensing delays, saying applications had been taking a “significant” amount of time to process since the April restrictions came into force.
The European Association of Automotive Suppliers echoed the same concerns last week, reporting that several plants had already shut down due to Beijing’s export controls, with more disruptions anticipated in the coming weeks.
A global leverage game
The backdrop to this rare earths standoff is China’s overwhelming dominance in the critical minerals supply chain.
The country produces roughly 60 percent of the world’s rare earth elements and accounts for about 70 percent of US rare earths imports. These minerals — used in smartphones, wind turbines, and even military fighter jets — are increasingly seen as geopolitical assets in the global transition to clean energy and high-tech manufacturing.
The leverage is already being felt in the numbers. According to data released by China’s General Administration of Customs, the value of rare earths exports in May plummeted 48.3 percent year-on-year to US$18.7 million.
Export volumes fell to 5,864.6 metric tons, down 5.67 percent compared to the same month last year.
That decline ended three consecutive months of year-on-year growth and showed the real-world effects of China's tightening export controls, which have remained in place even after Beijing agreed during talks with Washington last month to “suspend or remove” non-tariff countermeasures imposed since April 2.
Still, total rare earths exports for the first five months of 2025 were up 2.3 percent compared to the same period last year, suggesting that while value has plummeted, some shipments are still getting through under stricter oversight.
The Ministry of Commerce reiterated that it has approved export applications for qualified entities and expressed willingness to “communicate over export controls with relevant countries to facilitate compliant trade,” hinting at a more conciliatory approach ahead of another round of US-China trade negotiations.
Supply diversification still key
Despite the temporary relief, western automakers and their governments face a more fundamental challenge: diversifying away from China’s stranglehold on rare earths. Europe in particular has recognized the urgency. EU policymakers have pushed to accelerate domestic mining projects and build up strategic reserves.
But such efforts are years away from producing material results, leaving automakers vulnerable in the short term.
With that in mind, industry leaders are warning that without rapid progress on alternative supply chains, future geopolitical shocks could cause even greater disruption.
For now, China’s “green channel” offers a pause — but not a solution.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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05 June
Auto Industry Takes Hit as China's Rare Earths Export Controls Impact Supply Chains
The global auto sector is under strain as China’s tightened export controls on rare earths begin to ripple across supply chains, shutting down parts production and forcing carmakers to brace for deeper disruptions.
The export curbs, imposed in April in response to US tariffs under President Donald Trump, are now triggering operational slowdowns and halts from Europe to Japan, with suppliers and automakers sounding the alarm.
The European Association of Automotive Suppliers (CLEPA) confirmed this week that several supplier plants in the region have already ceased production due to depleted inventories of rare earths and related magnets.
These materials are critical to both electric and internal combustion engine vehicles, and CLEPA has warned that more shutdowns are imminent if the situation remains unresolved. The group notes that while hundreds of export license applications have been submitted to Chinese authorities, only about a quarter have been approved so far.
“With a deeply intertwined global supply chain, China’s export restrictions are already shutting down production in Europe’s supplier sector,” said CLEPA Secretary General Benjamin Krieger in a statement.
The German Association of the Automotive Industry (VDA), which represents the country’s powerful car manufacturing lobby, echoed this concern in comments made this week.
“The Chinese export restrictions on rare earths are a serious challenge for the security of supply, and not just in the automotive supply chains,” VDA President Hildegard Müller told CNBC in an email.
“If the situation does not change quickly, production delays and even production stoppages can no longer be ruled out.”
China’s commerce ministry began implementing stricter export controls in early April, requiring suppliers of rare earth elements and high-performance magnets to obtain special licenses for overseas shipments.
The process has proven slow, opaque and burdensome, with applications running into the hundreds of pages. According to customs data, exports of rare earth magnets from China halved in April.
The policy has escalated a broader trade conflict between the world’s two largest economies.
Trump imposed tariffs as high as 145 percent on Chinese imports earlier this year in an attempt to rebalance trade flows and revive domestic manufacturing. After initial market backlash, some of those tariffs were scaled back, but China’s retaliatory move to weaponize its dominance of the critical minerals supply chain has reopened the standoff.
“US-based automotive production may have to halt production now because of shortages caused by China of high-performance permanent rare earth magnets,” warned Mark A. Smith, CEO of NioCorp Developments (NASDAQ:NB).
Smith said China is the world’s only source of processed heavy rare earths and holds complete leverage in this domain.
“The only real solution is to accelerate production in the US of these strategic materials and reduce our current dependence on China,” he added in a statement issued by his company this week.
The White House has not publicly commented on the situation, though expectations are high that Trump and Chinese President Xi Jinping will address the export curbs in an upcoming conversation.
In a social media post on Wednesday (June 4), Trump called Xi “VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH,” reflecting the fragile state of ongoing trade negotiations.
Analysts have long warned that overreliance on China for critical minerals — including the rare earths needed in wind turbines, electric vehicles, semiconductors and military systems — poses both economic and security risks.
Currently, China accounts for nearly 90 percent of global rare earths refining and 60 percent of rare earths mining.
As governments and companies scramble to shore up supply chains, the rare earths crisis has become emblematic of the vulnerabilities built into the green energy transition — and the geopolitical risks of concentrated supply.
With no immediate end in sight, the global auto sector may be facing the early stages of a protracted disruption.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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