【Epoch Times News, June 13, 2025】German Machinery Equipment Manufacturers Association (VDMA) has issued a warning that German factories and equipment manufacturers are increasingly facing a bottleneck in the supply of rare earths, calling on the EU to exert pressure on China. VDMA is the largest industrial association in Europe, with 3,200 member companies.
“We have seen rare earths no longer flowing into our member companies,” VDMA Chairman Bertram Kawlath told reporters.
China controls over 90% of the global rare earth processing capacity, and rare earth products are widely used in various fields such as automobiles, fighter jets, and household appliances. The CCP implemented restrictive measures in early April, requiring exporters to obtain licenses issued by the Beijing authorities.
Following US President Trump’s imposition of tariffs on Chinese imports, another round of US-China trade war erupted, with China subsequently enforcing more stringent restrictions.
VDMA CEO Tilo Brodtmann stated that a range of materials, including nitrocellulose and germanium, are affected by this bottleneck.
Brodtmann believes that China is using these measures to exert pressure, and he calls on the EU to negotiate to alleviate the material blockade. However, he emphasizes that in the medium to long term, alternative suppliers need to be found.
On May 16, Lynas Rare Earths Ltd, an Australian company, announced that its factory in Malaysia has successfully produced Dysprosium Oxide, marking the first commercial separation and production of heavy rare earths outside of China. Heavy rare earths are widely used in renewable energy technologies, providing customers with the option to source products from suppliers outside of China.
Experts believe this is an important step in breaking China’s monopoly on the global rare earth supply chain.
Kawlath also called on the EU and the German government to engage in negotiations with China at the highest levels to lift the restrictions on rare earth exports.
(This article references relevant reports from Reuters)