LONDON, July 16 (Reuters) - The full implementation of China's rare earth export restrictions could put $6.5 trillion of downstream production outside the country at risk, the International Energy Agency warned on Thursday.
China, the world's largest producer of rare earths, expanded export controls in October last year to cover additional materials and introduced new licensing requirements, but later agreed to delay implementation for a year.
Rare earths are a group of 17 metals used in small quantities, but essential to products ranging from cars and aircraft to electronics and weapons systems.
If the controls take full effect, about $6.5 trillion of production across the automotive, high-tech, defence and energy sectors could be exposed to supply disruptions, the IEA said in its Global Critical Minerals Outlook report.
The U.S. and Europe would account for nearly half of the economic impact, the report added.
China, the world's largest producer of rare earths, expanded export controls in October last year to cover additional materials and introduced new licensing requirements, but later agreed to delay implementation for a year.
Rare earths are a group of 17 metals used in small quantities, but essential to products ranging from cars and aircraft to electronics and weapons systems.
If the controls take full effect, about $6.5 trillion of production across the automotive, high-tech, defence and energy sectors could be exposed to supply disruptions, the IEA said in its Global Critical Minerals Outlook report.
The U.S. and Europe would account for nearly half of the economic impact, the report added.
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