Tesla CEO Elon Musk has weighed in on China’s suspension of rare earth exports, downplaying concerns over the scarcity of these critical materials and shifting the spotlight to refining capabilities as the true bottleneck in the global supply chain.
In response to growing alarm over China's decision to halt shipments of rare earth metals and magnets to the United States and other countries, Musk posted on social media: “People understandably tend to think that rare earth mineral deposits are what’s scarce, given the name. That is false. They’re everywhere.” He added, “What matters is the ability to refine rare earth elements (which are NOT actually meaningfully rare) and manufacture magnets for use in electric motors.”
“As with lithium, what China has that others lack is the heavy industry of refining the minerals,” Musk explained, highlighting a structural weakness in Western supply chains. His remarks point to the need for nations like the U.S. to build their own refining capabilities if they hope to reduce dependency on Chinese exports.
Important to note that what matters is the ability to refine rare earth elements (which are NOT actually meaningfully rare) and manufacture magnets for use in electric motors. People understandably tend to think that rare earth mineral deposits are whats scarce, given the
Elon Musk (@elonmusk) April 13, 2025
The move is widely interpreted as a response to President Donald Trump’s tariff hikes earlier this month. As the regulatory framework remains in limbo, manufacturers around the world are bracing for supply disruptions. But Musk suggests that the challenge is not about finding rare earths but processing them at scale—something China currently dominates through its expansive refining infrastructure.
Musk’s comments suggest that solving the refining gap is where long-term resilience truly lies. He also got the support from investor Mario Nawfal.
RARE EARTHS ARENT RARECHINA OWNS THE REFINING, NOT THE MINESElons right: rare earth minerals are found all over the worldincluding in the U.S.but China controls over 85% of global refining. Thats the chokehold.The problem isnt digging the stuff up. Its turning it into https://t.co/oeFM3FkYeF pic.twitter.com/Q98JTWqrP8 Mario Nawfal (@MarioNawfal) April 13, 2025
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