I just noticed the paint starting to bubble about 1 inch above the handle on my 2005 expy's rear hatch. It looks like it starting to rust. Has any one else had an issue with this? I thought the hatch was made of something composite and not metal.

 

The hatch is aluminum and the problem you mention is very common. The fact that it is in the middle of the panel is a little different, most get it on a corner or an edge to start. Plenty of threads on it here.