China-Japan rare earths dispute (2010)
After a Chinese fishing boat collided with Japanese coast guard vessels near disputed islands, China halted rare earth exports to Japan. Global prices for the minerals tripled within months, exposing how concentrated supply had become.
Japan stockpiled rare earths, sped up recycling, and negotiated alternative suppliers, while manufacturers scrambled for substitutes.
The episode forced governments worldwide to treat rare earth supply as a strategic vulnerability rather than a market commodity.
It showed what happens when a dominant supplier weaponizes mineral exports — the exact scenario the EU's Critical Raw Materials Act is designed to prevent.
