A tightening chokehold by China on rare-earth magnet exports is forcing global automakers to consider unprecedented steps - including shifting parts of production to Chinese factories - to avoid shutting down electric vehicle assembly lines within weeks.
Four of the world’s top carmakers are urgently exploring ways to bypass China’s tightening grip on rare-earth magnet exports, critical to electric motors and other vehicle components. Among the most drastic ideas: relocating some production to Chinese factories or sending U.S.-made motors to China for magnet installation.
These workarounds could help automakers avoid shutdowns, as China’s export controls cover raw magnets - but not finished products. “If you want to export a magnet, they won’t let you,” said one supply-chain executive. “But if it’s in a motor, you can.”
In April, China began requiring licenses to export magnets made with key rare-earths like dysprosium and terbium. China controls about 90% of global supply and dominates the refining and separation process. The magnets are essential not just for EV motors but also for standard components like headlights and wipers.
Ford recently paused production of the Explorer in Chicago due to magnet shortages. Other automakers may soon face similar disruptions. A joint letter from major auto industry groups warned that domestic and alternative sources for rare-earths won’t meet near-term demand.
Shipping motors abroad just to install a chiclet-sized magnet adds cost and time - but carmakers say it may be the only way to avoid halting production. They’re also scouting for non-Chinese suppliers in Europe and Asia, though no source can yet match China’s scale.
Another option is reverting to older electric-motor technology that doesn’t rely on rare-earth magnets. But those systems are less efficient, and making more gas-powered cars would risk violating U.S. fuel-economy rules. Automakers also can’t rely on emissions credits from EV makers like Tesla, as those are sold out through 2027.
“Some licenses have been granted,” said Hildegard Müller, president of Germany’s auto lobby, “but it’s not enough. If the situation doesn’t change quickly, production stoppages are possible.”
The crisis highlights just how deeply dependent the global auto industry has become on China for a material that powers the future of transportation.
Volodymyr Zelenskyy has confirmed that Ukraine's negotiators will meet with Russian and U.S. delegations in Abu Dhabi next week for the first p...
A new book examining Azerbaijan’s military strategy, technology and operations during the Garabagh wars has been unveiled in Baku, offering i...
Spanish police are investigating the death of Tenerife striker Jesús de Miguel, who died after a collision with an opposing goalkeeper durin...
Iranian parliament speaker Mohammad Bagher Ghalibaf says the U.S. must act to prevent war after Tehran sent a “strong and rational response” to Washington. Meanwhile, U.S. forces have reportedly carried out limited strikes against Iranian targets, including Qeshm Island,
Hundreds of millions of U.S. citizens head to the polls on 3 November to elect the House of Representatives and Senate. How they vote could influence the direction of Donald Trump’s remaining 26 months in office and the outcomes of the Ukraine and Iran conflicts.
A six-day humanitarian ceasefire in the Russian-held Ukrainian town of Oleshky ended on Sunday, 1 November, after facilitating aid deliveries and civilian evacuations.
Kyrgyzstan has emerged as Central Asia’s fastest-growing economy, fuelled by a construction boom, public investment and trade linked to Russia. But with Western sanctions tightening, can the country sustain its rapid growth?
Russia airstrikes on a school used as a humanitarian aid distribution point in southeastern Ukraine's Zaporizhzhia region killed at least 26 people, including rescue workers and police officers, Ukrainian officials said. Another 27 people were reported missing.
Seven OPEC+ countries agreed on Sunday, 1 November, to keep oil production targets unchanged for December, extending an earlier freeze. But with the Iran war disrupting supplies and prices fluctuating, what is really driving the global oil market?
Cryptocurrencies are volatile, and their crashes make headlines. But does a slump in digital coins ever spill over into the pounds, dollars and euros in people's bank accounts? The short answer is not directly, but indirectly it can, and regulators are increasingly worried about how.
Russian President Vladimir Putin has praised record trade with Egypt as Moscow seeks to use its economic ties with Cairo to expand its influence across Africa, with a focus on manufacturing, infrastructure and energy.
Kazakhstan could begin building its first nuclear power plant in 2027, President Kassym-Jomart Tokayev said on 28 October, according to Azertac. But as Central Asia steps up its energy ambitions, which countries are investing in nuclear power and which are pursuing alternatives?
Apple's latest iPhone 18 Pro series has outperformed its predecessor in early global sales, even as rising manufacturing costs and weaker demand in some markets put pressure on the smartphone industry, according to Counterpoint Research data released on Tuesday (27 October).
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment