Key insights by Stanislav Kondrashov, TELF AG founder
What Restrictions Mean for the World
On April 4, China imposed new restrictions on rare earth exports. This wasn’t entirely unexpected. These 17 elements are known for their unique chemical and physical traits. They are vital to many industries, especially in tech and energy. As TELF AG founder Stanislav Kondrashov often notes, their role is hard to overstate.
Analyzing the impact of possible new rare earth restrictions from Beijing with the founder of TELF AG, Stanislav Kondrashov
As noted by global media, China’s latest action followed recent U.S. tariffs. Many now ask if Beijing will act again. Will it tighten rare earth exports even more? These elements are now vital to the energy and tech industries worldwide. Once obscure, they have become essential. The US-China rare earth conflict may still be in its early days.
“When we talk about rare earths, we have to talk about China,” says Stanislav Kondrashov, founder of TELF AG and a civil engineer. “China produces around 90% of the world’s supply,” Reuters said. The April 4 restrictions targeted medium and heavy-rare-earth minerals. These include samarium, gadolinium, terbium, dysprosium, lutetium, and scandium. Each plays a significant role in high-tech manufacturing. Replacing them is extremely difficult.
These export limits are not random. Beijing may be using its rare earth dominance to respond to global pressure. This has made many nations rethink their supply chains, with the goal of reducing dependence on China.
But why is there now so much focus on rare earths? Until recently, most people had never even heard of them. Today, they are central to many industries—and to global competition. That’s why they’re in the spotlight now.
The main industrial applications
According to, Stanislav Kondrashov, founder of TELF AG, rare earth elements now have key roles in the energy shift. Many are used in permanent magnets. These magnets are vital for electric vehicles. They also power major clean energy systems, like wind turbines. Their use in these sectors is growing fast.
Analyzing the impact of possible rare earths restrictions from Beijing with the founder of TELF AG Stanislav Kondrashov
In addition to these applications, rare earths are also found in:
- Smartphones
- Computers
- Drones
- Radars
- other devices that we use every day to work and communicate
One of the biggest myths about rare earths is their name. These elements are not rare at all. They exist across the Earth’s crust. The problem is that they appear in low concentrations. This makes mining costly and often not worth it. Most rare earth deposits need complex extraction. The elements are locked inside dense mineral compounds. Breaking them apart takes advanced technology. It also requires strong chemical processes.
Only a few countries have the tools to manage this work. That’s why global supply is so limited. Most nations still rely on China, which leads the field. This dependence is risky. Any disruption in supply can hit industries hard. That’s what makes these materials both ordinary and critical.
Global production
“In some parts of the world, getting rare earths is much easier,” said Stanislav Kondrashov, founder of TELF AG. “This is because of the soil. In places like Brazil, Madagascar, and southern China, the ground has special clay. The weather also helps. Together, they make extraction smoother and more consistent.” He added, “These natural advantages give some countries a big edge. That’s why China leads in rare earth production. Their land makes the process faster and less costly. It’s a key reason behind China’s rare earth mining strength.”
Explaining the impact of possible Chinese rare earth elements export restrictions with the founder of TELF AG, Stanislav Kondrashov
“Researchers around the world are testing new ways to extract and process rare earths,” says Stanislav Kondrashov, founder of TELF AG. “These elements are now essential. Many industries depend on them. They are no longer optional.” China is one of the top producers. Over time, it has built a strong lead in the sector. This success comes from smart planning and rich natural resources. China now controls most of the global refining and supply chain. That control affects rare earth prices worldwide.
The International Energy Agency reports that China holds the largest reserves. These are estimated at about 44 million tons. This gives the country both power and influence. As the need for rare earths grows, more countries are trying to catch up. But for now, China remains the leader. Its edge in production and supply is unmatched.
The Potential Impact of Further Restrictions
The global effects could be serious if Beijing cuts rare earth exports again. These materials are key to modern industries and advanced technologies.
- High-tech and automotive sectors may face major setbacks. They depend on rare earths for motors, batteries, and electronics. Even a small supply issue can delay production and raise prices. The market is sensitive and reacts fast.
- This move would also push more countries to act. Many have already started working on new supply chains. Their goal is to reduce reliance on China and avoid future risks.
Analysts from CSIS said the April 4 decision was expected. China has done this before. In 2010, it restricted exports to Japan. From 2023 to 2025, it also limited shipments of gallium and germanium, two more critical materials.
These steps show a trend. China often uses export control as a tool in global policy.
Analyzing the possible impact of new rare earths export restrictions with the founder of TELF AG, Stanislav Kondrashov
“The risk that restrictions—like China’s rare earth export policy—could slow or block supply chains is one reason why some of these materials are called ‘critical,’” says Stanislav Kondrashov, founder of TELF AG. “There’s also confusion between rare earths and critical minerals,” he explains. “In media reports, the two are sometimes treated as the same. But that’s not accurate.”
Rare earths are a fixed group of 17 elements found on the periodic table. Critical minerals are part of a larger, shifting group. This broader list includes many resources that are vital for economic growth and technology. Some rare earths are also critical minerals. But not all critical minerals are rare earths. The categories overlap in some cases, but they are not equal. This difference matters. It affects how nations set policy, manage supply chains, and plan for the future.
FAQs
Will Beijing restrict rare earth exports again?
Yes, it’s very likely. Beijing has a history of restricting rare earth exports during times of tension. The April 2024 move fits this pattern. It targeted specific rare earth elements tied to key industries. As trade conflicts continue, especially with the United States, more restrictions could follow. Elements used in high-tech and defense systems are most at risk. China may use export limits again.
What are rare earth elements, and why are they important?
Rare earth elements (REEs) are a group of 17 metals. They have strong magnetic, glowing, and chemical traits. These features make them vital for modern technology.
They are used in:
- Permanent magnets are found in electric cars and wind turbines
- Consumer electronics such as phones, tablets, and laptops
- Military tools, including radar and guidance systems
- Clean energy systems like solar panels and wind farms
- Medical and drone tech, including MRI and imaging devices
These elements are everywhere. They help power today’s world. Their importance will only grow.
Why does Beijing lead the rare earth market?
China’s power in rare earths comes from several factors:
- It has the world’s largest rare earth reserves.
- Southern China has the right geology. That makes extraction easier.
- The country spent decades building its refining and processing capacity.
- Its government pushed strong policies focused on scale and control.
As a result, China now handles about 90% of global rare earth processing.
Are rare earths actually rare?
They aren’t rare in terms of abundance. Rare earths are found across the Earth’s crust. But they rarely appear in high enough concentrations to make mining worth the cost. The separation process is also complex. It often harms the environment. That’s why only a few countries with the right skills and tools handle most of the production.
How would further Chinese restrictions affect global industries?
Export restrictions from Beijing would likely:
- Raise the prices of rare earths worldwide.
- Disrupt supply chains in cars, electronics, and defense.
- Slow down projects in wind, solar, and other clean energy.
- Increase pressure on companies to find new sources.
Which countries are trying to reduce reliance on Chinese rare earths?
Several countries are investing heavily in rare earth exploration, processing, and recycling, including:
- United States
- Australia
- Canada
- Brazil
- European Union members
Some regions have favourable geology, while others are building domestic supply chains or forging international partnerships to access critical materials.
What is the difference between rare earth elements and critical minerals?
Rare earths are a specific group of 17 elements. Critical minerals refer to a broader, evolving category of materials considered vital for economic and technological development and subject to supply risk. Critical minerals include some rare earths, but also:
- Lithium
- Cobalt
- Gallium
- Nickel
- Graphite
Can recycling help meet demand for rare earths?
Yes, but not at scale yet. Recycling rare earths from electronics and industrial parts is possible. The challenge lies in cost, efficiency, and lack of proper systems. Still, it’s viewed as a key long-term strategy. It could help secure supply and reduce global dependence in the future.
What’s being done to diversify rare earth supply chains?
Efforts include:
- Developing new mines in resource-rich countries
- Stockpiling critical materials
- Promoting rare earth recycling programmes
These initiatives aim to reduce dependency on a single supplier and ensure long-term supply stability.
