China has cautioned foreign manufacturers and trading houses against building large inventories of rare-earth elements, the Financial Times reported, citing people briefed on the discussions. Officials warned that companies attempting to hoard the strategic minerals could face tighter export quotas and additional customs scrutiny. Beijing’s stance is intended to preserve its leverage over materials that are critical for electric vehicles, wind turbines and defence systems. The rare-earth warning follows a series of export controls China has introduced since 2023 on other strategic metals such as gallium, germanium and graphite. China mines about 60% of the world’s rare-earth ore and refines more than 80%, leaving overseas industries highly dependent on its supplies. The latest move is expected to accelerate diversification efforts by the United States, the European Union and allies seeking to secure alternative sources.