President Donald Trump is set to use emergency powers and slash legal requirements - including some congressional funding approvals - relating to a law aimed at lifting U.S. production of critical minerals and weapons, according to a document seen by Reuters…Trump's action would apply to the Defense Production Act, a U.S. law that grants the president broad emergency powers to control domestic industries and resources during national security emergencies…The move would represent the latest attempt by the White House to reshape a critical mineral industry dominated by China, the top U.S. economic rival…The law places some restrictions on the president's authority, such as requiring the White House to seek congressional approval for projects over $50 million and forcing project delivery dates within a one-year time frame…The president can waive those requirements in the event of an emergency and Trump is expected to invoke those powers, according to the document seen by Reuters on Tuesday, ahead of its expected publication…John Paul Helveston, a professor at George Washington University, said U.S. investments in critical minerals represent a long-term solution to the problem, leaving the nation vulnerable to China's trade policy in the short run…"This all means that if the U.S. wants to have access to these minerals over the next 5-10 years, the U.S. will have to maintain a trade relationship with China," Helveston said.

Some European auto parts plants have suspended output and Mercedes-Benz is considering ways to protect against shortages of rare earths, as concerns about the damage from China's restrictions on critical mineral exports deepen across the globe…China's decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world…China's dominance of the critical mineral industry, key to the green energy transition, is increasingly viewed as a key point of leverage for Beijing in its trade war with U.S. President Donald Trump. China produces around 90% of the world's rare earths, and auto industry representatives have warned of increasing threats to production due to their dependency on it for those parts…"We must reduce our dependencies on all countries, particularly on a number of countries like China, on which we are more than 100% dependent," said EU Commissioner for Industrial Strategy Stephane Sejourne…Europe's auto supplier association CLEPA said several production lines have shut down after running out of supplies, the latest to warn about the growing threat to manufacturing due to the controls…While China's announcement in April coincided with a broader package of retaliation against Washington's tariffs, the measures apply globally and are causing worry among business executives around the world…German and U.S. automakers have complained that the restrictions imposed by China threaten production, following a similar grievance from an Indian EV maker last week…Automakers from General Motors (GM.N), opens new tab to BMW and major suppliers like ZF and BorgWarner (BWA.N), opens new tab are researching or have developed motors with low- to zero rare earth content in a bid to cut their reliance on China, but few have managed to scale production to bring down costs…China's slow pace of easing its critical mineral export controls has become a focus of Trump's criticism of Beijing, which he says has violated the truce reached last month to roll back tariffs and trade restrictions…He imposed tariffs as high as 145% against China only to scale them back after a selloff in stock, bond and currency markets over the sweeping nature of the levies. China has responded with its own tariffs and is leveraging its dominance in key supply chains to persuade Trump to back down.

A group representing auto suppliers in the United States called on Wednesday for immediate action to address China's restricted exports of rare earths, minerals and magnets, warning the issue could quickly disrupt auto parts production…China, which controls over 90% of global processing capacity for rare earths used in everything from automobiles and fighter jets to home appliances, imposed restrictions in early April requiring exporters to obtain licenses from Beijing. The tighter restrictions followed the opening of a trade war between the U.S. and China after President Donald Trump imposed tariffs on Chinese imports…"Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras," MEMA and the Alliance for Automotive Innovation wrote to the Trump administration in the letter, which was first reported by Reuters…Rare-earth magnet exports from China halved in April as companies grappled with an opaque application process for permits that sometimes require hundreds of pages of documents…U.S. auto companies are already feeling the impact of the restrictions. Ford shut down production of its Explorer SUV at its Chicago plant for a week in May because of a rare-earth shortage, the company said.

In the coming weeks, the US Congress could cement China’s lead in the clean-energy race by passing the Republican Party’s “big, beautiful bill”, which, among other things, seeks to eliminate the Inflation Reduction Act’s clean energy tax incentives. This would prompt America’s retreat from renewables, such as solar, wind and hydrogen, as well as electric vehicles ( EVs ) and the required charging infrastructure, fatally undermining its efforts to challenge China’s dominance in green industries…The numbers are staggering. Globally, China accounts for 65% of manufacturing capacity for wind turbines and more than 80% for solar panels, in addition to dominating the production of energy storage systems and EVs. China also largely controls the mining and refining of the minerals required for these green products, processing around 90% of rare earth elements and 60% to 70% of cobalt and lithium…The US government’s policy whiplash – one administration’s zeal for clean energy followed by the next administration’s disdain for it – has squandered America’s opportunity to become the world’s low-carbon leader, not to mention its long-held advantage in innovation. China is now firmly in the driver’s seat, thanks to a multi-decade push to build its clean tech industry, dominate supply chains, and export low-cost means of electrification to the world.

Metals investor Cobalt Holdings said on Wednesday it would not proceed with its planned initial public offering on the London Stock Exchange, ending hopes for what could have been the largest listing in the UK capital since early 2024…The company declined to specify the reasons for dropping its plans days after the listing was priced at $2.56 per share…However, one person with knowledge of the process said the process was halted as a result of lack of investor demand. Management continues to believe in the business model and the market for cobalt, a second person with knowledge of the situation said, adding that the company is planning to explore options including funding the business privately…Cobalt, which holds physical cobalt and has a contract to buy from Glencore, had plans to use the majority of the IPO proceeds to buy an initial 6,000 metric tons of the key battery metal, worth around $200 million, from the global miner.