China has imposed stricter export controls on rare earth elements, posing a threat to U.S. supply chains for clean energy and artificial intelligence.

The Ministry of Commerce announced on Thursday that it had implemented additional export restrictions to “safeguard national security and interests.” China is the world’s largest producer of rare earths, which are essential to energy and defense technologies. According to the U.S. Geological Survey, between 2020 to 2023, the U.S. imported nearly 56% of its rare earth compounds and metals from China.