On Wednesday, a US auto parts group, MEMA, the Vehicle Suppliers Association, has urged immediate action over China's tighter controls on rare earth exports, warning the move could soon disrupt car production.

Some European auto parts plants have suspended output and Mercedes-Benz is considering ways to protect against shortages of rare earths, as concerns about the damage from China's restrictions on critical mineral exports deepen across the globe.

The EU is pressing China to loosen restrictions on exports of rare earths because of an “alarming situation” for the bloc’s car industry, with production lines in danger of grinding to a halt. European trade commissioner Maroš Šefčovič said he had questioned Chinese commerce minister Wang Wentao about the shortage of vital rare earth elements and magnets in a meeting on Tuesday.