China accounts for 90% of global rare earth production, and for certain heavy rare earths like dysprosium and terbium, that number was close to 99% until recently. These elements are crucial for building EV motors, drones, missiles, and a wide range of high-tech components.

According to Reuters, shipments stopped immediately after the new restrictions took effect.

Exporters must now wait weeks or possibly months for licenses from the Ministry of Commerce.

“When asked by my clients when their cargoes will be able to leave China, we give them an estimated time of 60 days but it may actually take longer than that,” one trader told Reuters.

Michael Silver, CEO of American Elements, told The New York Times that his company was advised to expect a 45-day delay. “We increased our inventory last winter in anticipation of a trade war,” he said, though he acknowledged that existing contracts can only be fulfilled for now.