'They're everywhere'—Musk weighs in on China's rare minerals export ban
What's the story
Tesla CEO Elon Musk has responded to China's recent decision to halt exports of rare earth metals and magnets.
He downplayed fears over the scarcity of these materials, highlighting refining capabilities as the real issue in the global supply chain.
"People understandably tend to think that rare earth mineral deposits are what's scarce, given the name. That is false. They're everywhere," the tech billionaire said in a post on X.
Refining focus
Musk stresses on refining capabilities
Musk emphasized that the actual problem isn't about sourcing rare earths, but processing them at scale.
He said, "What matters is the ability to refine rare earth elements (which are NOT actually meaningfully rare) and manufacture magnets for use in electric motors."
He added that China's strength is its heavy industry of refining these minerals, which is a weakness in Western supply chains.
Export impact
China's export restrictions and global concerns
China's export restrictions, effective April 4, have sparked global fears of shortages of critical materials for electric vehicles, semiconductors, drones, and defense equipment.
China currently makes up for about 90% of the world's rare earth magnet production.
The move is largely viewed as a retaliation to recent tariff hikes by the US administration.
With the regulatory framework still unclear, manufacturers across the world are bracing for supply disruptions.