Auto Industry Crash on Horizon from Lack of Rare Earth Minerals & Magnets? - CleanTechnica

The article from CleanTechnica highlights a looming crisis in the auto industry due to China's tightening control over rare earth minerals and magnets, essential components for both electric and gas-powered vehicles. China currently dominates over 90% of the global rare earth supply chain and has recently imposed export restrictions amid escalating trade tensions with the West. These restrictions have led to significant disruptions, with several European automotive suppliers halting production lines because export licenses for these critical materials are scarce—only about 25% of requests have been approved. Consequently, some Chinese magnet manufacturers have paused production, potentially exacerbating future shortages. This supply chain bottleneck threatens not only the automotive sector but also other industries reliant on rare earth elements, such as robotics and military defense systems. The electric vehicle industry is particularly vulnerable since rare earth metals are vital for electric motors and catalytic converters. If the situation persists, the auto industry in the US and Europe could face temporary shutdowns, causing widespread industrial and economic impacts. The article underscores the urgency of resolving these supply chain issues to avoid a severe disruption in vehicle manufacturing and related sectors.