European auto industry groups are raising alarms over a rare earth shortage triggered by China’s recent export restrictions.

The curbs, imposed in response to U.S. tariffs, have already caused shutdowns at several European supplier plants, with more disruptions expected as inventories run low.

Rare earths are essential for both combustion and electric vehicles, and only about 25% of export license applications have been approved by China.

Germany’s auto industry warns that continued delays and customs bottlenecks could halt production, CNBC has reported.

Industry leaders are urging EU officials to address the issue urgently, as global demand for rare earths continues to rise.

Written by B.C. Begley