Some European automakers They have suspended production and Mercedes-Benz is considering ways to protect against rare earth’s shortages as concerns about damage from its restrictions China Exports of critical minerals are intensifying around the world.
China’s decision in April to suspend the exports of a broad spectrum of rare land and related magnets has overturned planning in supply chains at the heart of automakers, aerospace manufacturers, semiconductor companies and military companies.
China’s sovereignty in the critical mining industry, a key to transitioning green energy, is increasingly regarded as a key point for Beijing in its trade war with US President Donald Trump. China produces about 90% of rare earths worldwide, and automotive representatives have warned of increasing threats to production due to their dependence on these components.
The European Car Suppliers Association (CLEPA) announced that several production lines were closed after depletion of supplies, warning the growing threat of construction due to shortages.
Of the hundreds of export licenses submitted by car suppliers since the beginning of April, only a quarter has been approved so far, according to Clepa, with some requests being rejected for reasons that the Union has been described as “extra procedural”. He did not name companies, but warned of further operation.
Mercedes-Benz’s production head, Jourg Burzer, said he was talking to top suppliers about the creation of “stocks” about the protection against possible deficiencies in supply. Mercedes is not currently affected by lack. BMW said part of its suppliers network had problems, but its own factories are operating normally.
German and American automakers have complained that the restrictions imposed by China threaten production. A similar note was made by an Indian electric vehicle manufacturer.
Many companies are pressing on their governments to find a quick solution, but some companies have enough stocks only for a few weeks or months, according to Wolfgang Weber, Managing Director of the German Electric and Digital Industry.
Automotives, from General Motors to BMW, and major suppliers, such as ZF and Borgwarner, are researching or developing engines with low to zero rare earth, in an effort to reduce their dependence on China, but few have managed to scale production.
BMW has developed a magnet -free electric motor for its latest generation of electric cars, but still wants rare land for smaller engines that supply fittings such as wipers or car windows.
“There is no solution for the next three years except for an agreement with China,” said Andreas Kroll, chief executive of Noble Elements, an importer of rare land for medium -sized businesses and newly established businesses without their own stocks.
“China practically controls 99.8% of worldwide production of severe rare earths. Other countries can only produce them in a few quantities, essentially on a laboratory scale, “he added.
Source: RES-EIA