China’s rare earth restrictions halt first auto industry production lines
“The auto industries in both the US and Europe could come to a standstill within weeks thanks to China’s ongoing restrictions on exports of rare earth minerals and magnets. China introduced strict export controls on rare earth minerals and magnets in early April as part of its tit-for-tat responses to Donald Trump’s new tariffs. While most of those tariffs have since been temporarily paused, the rare earth restrictions remain in place worldwide, which is a problem since China is estimated to control more than 90 percent of the rare earth supply chain. It’s a problem for multiple industries, including robotics and defense, with auto manufacturers at particular risk. Rare earth magnets are essential for hybrid and EV motors, but are also found in everything from catalytic converters to car seats. The Times reports that US auto executives are warning that production could be cut back within weeks, while after a first warning last week, several European part suppliers have already begun to stop work.”
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