Western governments are scrambling to break their dependence on China for rare earth magnets, a critical component of clean energy and high-tech supply chains, as Beijing’s recent export restrictions sent shockwaves through global manufacturing.

The United States has taken the most aggressive steps, with the Department of Defense investing directly in MP Materials, operator of America’s only rare earth mine, and guaranteeing price floors to shield it from market volatility. But while mining has captured the spotlight, a less glamorous but potentially transformative solution lies scattered all around: the millions of defunct laptops, smartphones, and power tools that contain recoverable rare earth magnets.

The IAA Mobility show in Munich projected confidence with glittering displays, sleek new models, and bold promises of a future powered by electric mobility. But beneath the spotlights and carefully staged reveals, Europe’s automotive establishment is increasingly aware that it is entering the toughest decade in its history. Executives from Volkswagen, Mercedes-Benz, BMW, Porsche, and Renault openly acknowledged that the era of easy profits and dominance in global markets has come to an end.

The most immediate problem is China. For decades, it has been the growth engine of the global car industry, but demand is now stalling and a “brutal price war” has erupted. Volkswagen’s luxury arm, Porsche, saw sales in China plunge almost 28% in the first half of the year. Its chief executive Oliver Blume bluntly declared that the “Chinese luxury market does not exist anymore.” That is an extraordinary reversal for a brand that once relied on China as its most lucrative outlet.

North Carolina regulators have granted a state mining permit to Piedmont Lithium, a supplier for Tesla, enabling the development of a significant U.S. source of lithium for electric vehicle batteries. This milestone, announced by Piedmont on Monday, marks progress in tapping into a vast lithium deposit near…