The rare earths problem: Why it could soon be harder to get a car, electronics or even an MRI

Call it a “chip shortage on steroids.”

Call it a “chip shortage on steroids.” That’s how one expert told CNN the auto industry is describing a possible shortage of rare earth elements — minerals that are now center stage in the global trade war. Running low on those minerals could recall the pandemic-era chip shortage that jacked up car prices, used and new, across America. China has a virtual monopoly on those 17 metallic elements, which are critical components to everyday products from cars to jet engines to electronics like smartphones and flat-screen TVs. They’re even crucial for the contrast dye used in MRI machines and some cancer drugs. And, recently, China made it even harder to get them: The country introduced a new licensing requirement on the export of the elements in April, effectively slowing the flow of outbound shipments to most of the world, including the United States. Delegations from the US and China are meeting in London this week to talk about a new trade deal, and rare earths are almost certainly a major part of those discussions. Right now, US companies have only about two or three months’ worth of supply, according to Gracelin Baskaran, director of the Critical Minerals Security Program at the Center for Strategic and International Studies. After that, “industry simply could not manufacture” unless an agreement is reached between the US and China, she told CNN.