China imposed a full export ban on rare earth materials targeting 10 US military-linked entities, including MP Materials and USA Rare Earth, on 22 June 2026, escalating from prior licence-only restrictions. Simultaneously, China's finance ministry barred Chinese buyers from procuring goods from 46 additional US firms, broadening the scope of the action beyond the rare earths sector. The measures specifically target the US domestic critical minerals supply chain, with direct consequences for defense procurement and clean energy manufacturing.
MP Materials (MP) and Energy Fuels (UUUU) are among the US rare earth producers placed on China's export control list, meaning they are cut off from Chinese rare earth inputs that feed into advanced manufacturing and defense supply chains. Rare earth materials processed through these firms supply components for military hardware, electric vehicles, and semiconductor manufacturing equipment, making the ban a direct constraint on upstream supply for those sectors.
The action is described by sources as a retaliatory response to Washington's broader efforts to build alternative critical mineral supply chains and to the Pentagon's designation of Chinese technology firms on its 1260H military-affiliated entities list. China's finance ministry directive covering 46 additional US companies was issued concurrently, indicating a coordinated escalation across both trade and procurement dimensions.
Sources: Finnhub, Cnbc TOP, Bloomberg Markets