China, the world's largest producer and consumer of rare earth minerals, will limit its domestic production of rare earth minerals in the second half of this year.

China, the world's largest producer and consumer of rare earth minerals, will limit its domestic production of rare earth minerals in the second half of this year. This move affects a group of 17 elements used to make electric vehicles and consumer electronics.

Unnerved manufacturers are scouring the globe for alternative supplies. China's production limit will provide only enough rare earth minerals for domestic Chinese buyers. With ripple effects on prices and supply, observers worry that China can easily use its rare earth mineral production quota as a lethal weapon in any current and upcoming trade war.