Macroeconomic Effects of Rare Earth Supply Disruptions

Nov 14, 2026

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CEPR has released research analyzing the macroeconomic consequences of rare earth supply disruptions.

The study addresses how constraints in rare earth element availability create cascading effects across dependent industries including electronics, automotive, and renewable energy.

Understanding these systemic impacts is critical for supply chain professionals developing resilience strategies and diversifying sourcing to mitigate exposure to critical material shortages.

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What This Means for Your Supply Chain

Simulation Suggestion

strategic

What if rare earth element availability decreases by 20-30% for 6 months?

Model the impact of a significant reduction in rare earth element supply over a medium-term horizon. Simulate how procurement teams would need to adjust sourcing strategies, identify alternative suppliers or substitutes, and manage inventory levels across dependent manufacturing operations. Evaluate cost increases, lead time extensions, and potential production delays in electronics and automotive sectors.

Run this scenario

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What This Means for Your Supply Chain

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