CONNECT WITH US
May 6
Rare earth prices surge 210%: EV, robotics, defense supply chains on the line
As China imposed export controls on seven critical medium and heavy rare earth elements in early April, a buying frenzy has gripped the international rare earth market. Within a month, prices for terbium and dysprosium have more than doubled, marking the steepest monthly surge in nearly a decade. The fallout is global. Analysts say the price spike is adding new fuel to US-China trade tensions and raising alarms for manufacturers of electric vehicles, robotics, and military equipment. Industry experts warn that the long-term stability of these supply chains is now at risk, as companies scramble to secure the raw materials critical for next-generation technology.
Taiwanese ceiling fan manufacturer Champ-ray Industrial reported strong competitive positioning despite recent tariff disruptions affecting the industry, citing higher tariff pressures on its regional rivals. The company has maintained normal order fulfillment without cancellations or shipping delays.
Powertip Image (PTIC), a subsidiary of STN LCD panel manufacturer Powertip Technology, is actively developing niche products beyond notebook computer applications. Its product range includes medical endoscopes, robot vacuum cleaners, smart refrigerators, industrial computers, drones, and security surveillance systems. All these products have already seen actual shipments, mostly to top international brands.
According to Daiji World, Optiemus Unmanned Systems (OUS), a division of Optiemus Infracom, has joined forces with Taiwan-based Avix Technology to co-develop and manufacture high-performance drone cameras, gimbals, and components in India.
Following US President Donald Trump's executive orders implementing reciprocal tariff measures, the China-US trade war has escalated rapidly. China's response now extends beyond traditional trade items to impact the civil aviation industry, showing a more forceful stance than in previous disputes.
Auden Technology, a Taiwan-based RF and testing equipment manufacturer, reported the first-quarter 2025 revenue of NT$323 million (US$9.93 million), down 12.07% year-over-year amid seasonal weakness and delayed AI PC product launches.
Since US President Donald Trump took office, trade tensions between the US and China have escalated, although a recent easing of tariffs announced on April 23 suggests a more calibrated approach. Nevertheless, the overall competition between the two nations continues, with maritime issues becoming a significant area of focus.

In a bold escalation of its ongoing trade dispute with Washington, China has dramatically tightened its grip on the global supply of critical metals—imposing fresh export restrictions on rare earth elements and slashing shipments of gallium, germanium, and antimony, materials essential to technologies ranging from semiconductors to defense systems.

Taiwan is strengthening its asymmetric warfare capabilities through unmanned surface vessels (USVs), with both government and private sector companies developing technologies that could reshape the island's maritime defense posture.
The Belt and Road Initiative (BRI), once shadowed by international concerns over China's overseas expansion, is now entering phase 2.0 amid the intensifying US-China trade war and global supply chain restructuring. Chinese President Xi Jinping has recently made frequent visits to Southeast Asia, with his state visit to Malaysia opening doors for the Commercial Aircraft Corporation of China (COMAC) to enter the ASEAN market.
As global trade grapples with the turbulence of tariff disputes, defense and military demands remain undeterred, emerging as pivotal bargaining chips in negotiations over reciprocal tariffs with the US. Unmanned vehicles have surged to the forefront of strategic priorities, with Taiwan's drone industry already coalescing into a nascent national team.
China's drone supply chain operators report that open-source AI technologies like DeepSeek are significantly enhancing drone performance when applied to power systems and aerospace applications. This integration highlights both technological advances and growing cybersecurity challenges.