News
China has recently introduced a new round of rare earth export controls. As reported by Reuters, Tesla CEO Elon Musk states on Tuesday that production of the company’s Optimus humanoid robots is being impacted by China’s restrictions on rare earth magnets. Musk previously states that he expects Tesla to produce thousands of Optimus units this year, the report adds.
According to the report, Musk indicates that China is seeking guarantees that its rare earth magnets won’t be used for military applications. He adds that Tesla is currently working with Chinese authorities to secure an export license for the magnets.
During the earnings call, Musk also addresses the impact of tariffs, noting that they affect Tesla’s energy business the most, as the company sources LFP (lithium iron phosphate) battery cells from China, as noted by Bloomberg.
Tesla reports its earnings for the first quarter of 2025 on Tuesday. Total revenue falls 9% year-over-year—from USD 21.3 billion to USD 19.3 billion. Automotive revenue drops 20%, from USD 17.4 billion to USD 14 billion.
China’s Recent Export Controls on Rare Earths
Musk’s remarks come amid growing global concerns over China’s tightening grip on rare earth exports. According to Liberty Times, citing Financial Times and The Korea Herald, China’s latest round of export controls could trigger production shutdowns in the automotive sector, as supplies of critical magnets may run out within months if China enforces a full export halt.
The new restrictions, announced by Beijing on April 4, apply to seven rare earth elements—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—as well as related products like permanent magnets. While not an outright ban, the regulations now require companies to obtain special licenses, potentially causing significant shipment delays, The Korea Herald notes.
Humanoid Robotics: A New Front in the US-China Tech Race
Humanoid robotics are emerging as a new focal point in the US-China tech rivalry. According to TrendForce, a comparison of key technological specifications reveals that American companies prioritize industrial applications—focusing on payload capacity and battery life—while Chinese manufacturers emphasize versatility and a higher degree of freedom in full-body and hand movements.
Over the next five years, commercial humanoid robots are expected to exhibit significant price gaps and tiered applications, with regional ecosystems fostering localized production and industrial development, TrendForce notes.
Read more
(Photo credit: Tesla)
