The International Energy Agency (IEA) warned in a recent report that China’s potential rare‑earth export curbs could endanger $6.5 trillion worth of downstream production outside the country each year if the measures were fully implemented. The agency’s analysis focuses on the value of industries that rely on rare‑earth elements for manufacturing, ranging from electronics to renewable energy technologies.

Rare‑earth elements, though used in small quantities, are critical inputs for high‑performance magnets, batteries, and many advanced systems. The IEA estimate aggregates the annual revenue of all downstream sectors that would be affected by a restriction on Chinese rare‑earth supplies, highlighting the sheer scale of global dependence on a single source.

The report urges policymakers and industry leaders to diversify supply chains, invest in recycling, and develop alternative sources to mitigate the risk. It stresses that proactive measures are essential to protect the $6.5 trillion of economic activity identified as vulnerable to any disruption in rare‑earth availability.