The automotive industry is facing potential disruptions due to a shortage of rare earth minerals, primarily sourced from China.
A slowdown in Chinese exports threatens global automotive production. Magnets, crucial for components like brakes, airbags, and electric motors, are in short supply. China controls a significant portion of the rare earth mineral supply chain, including mining, processing, and refining.
Component suppliers have already closed factories. Analysts predict unfinished cars on production lines. Electric vehicles require more rare earth minerals than traditional cars.
Automakers are seeking solutions, including developing magnet alternatives. GM and BMW are working on motors that don't rely on rare minerals, but costs are high. The EU is also working to increase its mineral self-sufficiency.