Automakers are in "complete panic" due to the situation on the rare earth metals market
Kyiv • UNN
Automakers are facing disruptions in the supply of magnets due to export restrictions from China. Factories may stop in July, companies are looking for alternative sources and technologies.
Global automakers are facing critical challenges due to disruptions in the supply of rare earth magnets, which are key to the production of electric motors. This is reported by UNN with reference to Reuters.
Details
According to Frank Eckard, CEO of Magnosphere in Troisdorf, Germany, he has received a flood of calls in recent weeks.
Annoyed automakers and parts suppliers are desperately looking for alternative sources of magnets, which are in short supply due to China's export restrictions
Some told Eckard that their factories could be idle until mid-July without backup supplies of magnets.
The entire automotive industry is in a panic. They are willing to pay any price
The reason for this reaction was new restrictions on the export of rare earth magnets from China, which significantly complicated the work of automakers around the world.
Export controls from China create additional administrative hurdles. We are working on it, but problems remain, said Ford Motor Company CFO Sherry House.
Against the background of these events, companies are taking urgent measures - from finding new suppliers to investing in alternative technologies to reduce dependence on the Chinese market.
Let us remind you
China's decision in April to suspend exports of a wide range of critical minerals and magnets has overturned supply chains, which are key to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.
This move underscores China's dominance in the critical mineral industry and is seen by China as leverage in its ongoing trade war with US President Donald Trump.
As UNN reported, leading trade representatives from the US and China plan to hold new talks in London. This gives hope that the world's two largest economies will be able to defuse tensions over China's dominance in the rare earth minerals industry
Additionally
Rare earth metals, including neodymium and praseodymium, are critical for the production of permanent magnets used in electric motors. These materials ensure the compactness, power and efficiency of motors in most modern electric vehicles, making them indispensable in the production chains of the automotive industry.