China Rare Earth Controls x Tesla Optimus (Neodymium Magnet Supply Disruption)

China imposed export controls on seven heavy rare earth elements and finished magnets in April 2025, directly impacting Tesla Optimus humanoid robot production. Musk confirmed the restrictions affected Optimus. Neodymium magnets are critical for Optimus actuators and motors. This represents a major geopolitical supply chain risk — China controls 87% of global rare earth processing. Tesla is seeking alternative sources including Lynas Corporation (Australia).