📊Executive Summary

China has tightened its rare-earth export controls as of October 2025, coinciding with a significant price increase of 30-37% for rare earth concentrates. This move is expected to lead to longer lead times and increased costs for electronics and defense supply chains, particularly affecting semiconductor production. The new regulations also include stricter licensing requirements and apply extraterritorially, impacting products made outside of China using Chinese-origin rare earths. The escalation of geopolitical tensions and the disruption at Nexperia's China unit further complicate sourcing strategies, prompting manufacturers to consider diversified sourcing and partnerships to mitigate risks. Procurement leaders are advised to enhance supply visibility and explore non-China sources to navigate the evolving landscape....