Ford struggles with supply of rare earth magnets, CEO tells Bloomberg News
June 13 (Reuters) - Ford Motor Co (F.N), opens new tab is struggling with supplies of rare earth magnets, the automaker's CEO Jim Farley told Bloomberg News in an interview on Friday.
China, which controls more than 90% of global rare earth processing capacity, imposed new export licensing rules in April, tightening supply to Western manufacturers of everything from cars and fighter jets to household appliances.
Automakers, especially those focused on EVs, are among the largest industrial consumers of rare earth materials.
Western countries have been trying to reduce reliance on Chinese rare earths by investing in alternative sources and refining capacity in places like Australia, Canada, and the United States.
Ford did not immediately respond to Reuters' request for a comment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
an hour ago
- Daily Mail
Ford forced to shutter factories amid worrying parts shortages: 'Hand-to-mouth right now'
China's trade leverage temporarily shuttered one of Detroit's biggest brands. Ford's CEO, Jim Farley, said his company doesn't have enough rare-earth magnets, forcing the automaker to halt some production lines. 'It's day to day,' the top boss said in a Friday interview with Bloomberg News. 'We have had to shut down factories. It's hand-to-mouth right now.' Ford's production struggles are part of the ongoing tit-for-tat trade escalation between Washington and Beijing. But the company is expecting relief in the coming weeks. In April, Chinese officials stopped the flow of magnets into the US — a critical component found in nearly every modern car's brake pads, seats, windshield wipers, and batteries. The pause came in response to President Donald Trump's then-145 percent tariffs on all Chinese imports. The throttled magnet trade threatened to strangle production plants and empty car dealership lots, sending automakers and industry groups into a tizzy. In May, the Alliance for Automotive Innovation — which represents major US automakers — sent a letter to President Trump warning that China's response could paralyze car production. 'Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components,' the letter, signed by the group's president, John Bozzella, said. 'In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines.' Later that month, workers at Ford's Chicago plant, where the company builds the popular Explorer SUV, were told to go home due to the magnet shortage. But as Ford continues to scramble for parts, the company is now expecting a reopening of the supply spigot. American and Chinese trade negotiators have announced a tentative agreement that lowers tariff rates and resumes magnet exports. The deal includes temporary export licenses for rare-earth suppliers. Those licenses will allow magnet shipments to resume to the top three US automakers — including Ford — as soon as this month. China's President Xi Jinping has not officially signed the deal, but President Trump posted on Truth Social that the agreement was 'done.' Industry analysts confirmed to that rare-earth magnets will likely be exempt from American tariffs under the new deal. A standard gas-powered vehicle requires around a half-pound of rare earth magnets CEO Jim Farley confirmed that Ford had temporarily shuttered some of its plants because of China's magnet pause Ford produces over 80 percent of its SUVs and trucks for the US market in American plants Still, as the pipeline starts back up, Farley's announcement underscores China's current leverage over American manufacturing. The US once refined its own rare-earth magnets for vehicle assembly, with facilities operating across dozens of Midwestern states. But 20 years ago, the last domestic refinement plant — located in Indiana — shut down. China, which now controls more than 90 percent of global rare-earth processing capacity, filled the gap. American automakers are now looking elsewhere for supply, including Australia, Canada, and Saudi Arabia. 'Should the US-China trade deal be upheld by both sides, US automakers should be able to secure enough rare earths to continue their production as scheduled,' Seth Goldstein, a vehicle analyst at Morningstar, told 'I would guess all US automakers are looking to secure alternate rare earths supply outside of China as a way to protect themselves from the potential that China may halt exports again in the future.'
Daily Mail
an hour ago
- Daily Mail
Inside the glamorous life of Bill Gates' daughter Phoebe… who publicly mocks her dad's tech skills
Phoebe Gates is just like any other college grad - apart from the fact her dad is a tech billionaire, she founded an app with her best friend, and she regularly attends star-studded events wearing designer outfits. The 22-year-old Stanford University grad has lived a seemingly charmed life - growing up with unimaginable wealth as the daughter of Microsoft founder Bill Gates and ex-wife Melinda. The family grew up in a $131 million mansion in Medina, Washington, that came complete with seven bathrooms, 24 bathrooms, and six kitchens, as well as its own man-made beach, at-home movie theater, gym, and trampoline room. The property, worth an estimated $131 million, is nicknamed 'Xanadu 2.0,' a reference to the fictional estate in the movie 'Citizen Kane.' Her parents' wealth has provided a lavish lifestyle - complete with the finest education - and while older siblings Jennifer, 30, and Ryan, 25, have kept their lives more private, Phoebe hasn't shied away from the spotlight. Her Instagram regularly shows her attending glamorous events, including summits, talks and exclusive fashion events, often dressed by designer labels and dripping in expensive jewelry. But despite her Instagram-influencer persona, Phoebe - who previously interned with British Vogue - has been determined to forge her own path. 'Okay, I'm my parents' daughter, that gives me immense privilege, but it's not what I'm defined by,' she previously told WWD. The budding entrepreneur - along with former Stanford roommate Sophia Kianni - launched her own e-commerce startup app called Phia earlier in the year. The platform offers shoppers an easy way to compare the prices of new and used items across more than 40,000 selling sites. Despite her father's wealth, Phoebe raised the capital independently - first getting $100,000 from Soma Capital, then $250,000 from the Stanford social entrepreneurship grant, and finally $500,000 in angel investments, bringing the total to $850,000. Phoebe is the third child of Bill and Melinda Gates, who divorced after 27 years of marriage in 2001. Although her billionaire Microsoft co-founder-father provided her with a very comfortable childhood, she has admitted it has done more harm than good at times. Last year, Phoebe appeared on Netflix's new docuseries What's Next? The Future With Bill Gates. In the series, Bill asked his daughter if she had ever come across conspiracy theories about him - including that the COVID pandemic was a ploy to allow Bill Gates to put microchips in vaccines that would allow him to track people. 'All the time,' Phoebe responded. 'I've even had friends cut me off because of these vaccine rumors,' she said. While Bill is one of the richest people on the planet, ranked seventh in the world by Forbes, Phoebe keeps a close relationship with him. She often speaks about their bond and, despite her father's impressive background, she recently teased him about his lack of tech awareness in an Instagram post. 'Happy birthday, Dad! @thisisbillgates - my favorite person who now texts me to let me know he's going to send me an email,' she jokingly captioned a picture of herself with her dad. Bill has spoken previously about what will happen to his billions when he dies. In 2024, while speaking with fans on a Reddit Ask Me Anything, the Microsoft founder said that he thinks leaving his vast fortune to his three children would be a mistake. Instead, he plans to leave the majority to charity, including his own, The Gates Foundation. The tech mogul is shuttering the Gates Foundation by December 31, 2045, effectively ending a lifelong project to give away his multi-billion fortune. He announced earlier in the year that he plans to distribute 'virtually all' of his wealth, approximately $200 billion, within the next 20 years. The billionaire announced he will give away 99 percent of his immense fortune, leaving one percent for himself and his children. The Gates Foundation, which Gates founded in 2000 along with his ex-wife who left the organization after their divorce, pours billions of dollars every year into health, foreign aid and other public assistance programs. Gates will hold onto just one percent of his wealth - which still equals out to an estimated $1.62 billion. As for her personal life, Phoebe is currently dating Arthur Donald, the grandson of Paul McCartney, as per Nylon.
Daily Mail
an hour ago
- Daily Mail
Trump's financial disclosure reveals true extent of family crypto venture
President Donald Trump has pulled back the curtain on the staggering scale of his personal and family fortune. A newly released 234-page financial disclosure reveals how Trump raked in more than $57 million last year from a single, family-linked cryptocurrency venture, rocketing the controversial project to the top tier of his income sources. The firm, a decentralized finance (DeFi) outfit called World Liberty Financial, was co-founded in 2024 not just by Donald but also his three sons, Don Jr., Eric, and even 18-year-old Barron alongside Zach Witkoff, the son of real estate mogul and Trump foreign policy envoy Steve Witkoff. While skeptics may have mocked Trump's forays into meme tokens and NFT trading cards as gimmicks, the eye-watering profits suggest otherwise. Trump personally holds between $1 million and $5 million in crypto assets, according to the filing, but the platform itself has proven to be a family cash machine. The Trump 'coin' was just created in digital code out of nothing – but suddenly it was worth billions. In fact, $57,355,532 is the figure what Trump took in from World Liberty Financial alone, the disclosure reads. While the venture has sparked concerns over ethical boundaries and presidential profiteering, the White House insists Trump's assets are safely walled off in a trust controlled by his children. The Trump family, who have faced relentless accusations of enriching themselves from Trump's first term, have showed a growing interest in digital currencies this time around. Last July, Trump promised to make America the 'crypto capital of the planet' by enacting new laws to pave the way for financial institutions and pension funds to invest in these controversial and risky assets, bringing them the respectability that has so far eluded them. Trump has credited his entrepreneurial youngest child, Barron, 19, with educating him about crypto. The pair, together with Barron's half-brothers Donald Jr and Eric, are heavily involved in his crypto business, World Liberty Financial, which Trump announced last September and which also has its own tradeable coin or 'token'. On its website, the company vows to 'leverage the global reach and recognition of the Trump brand' to promote crypto. Critics insist the President has created a new (and ingenious) vehicle for his supporters to give him money – risking corruption on an epic scale. Now anyone wanting to curry favor with him could quietly fill the Trump family coffers by buying the coins and pushing up its price. Putting money into $Trump coins would lend his political backers a degree of plausible deniability: the could legally argue that the purchase is not a bribe but an investment in an asset. Donald Trump disclosures by nloffredo 'Now, you can get your piece of history,' proclaims the blurb for the President's meme coin on its website. 'This Trump Meme celebrates a leader who doesn't back down, no matter the odds.' The revelation comes at a time when Trump's finances are under renewed scrutiny, not only due to his sprawling business empire, but because of historic legal penalties leveled against him. In addition to the $57 million crypto windfall, Trump disclosed: A $454 million civil fraud judgment from New York Attorney General Letitia James. $88 million in damages awarded to writer E. Jean Carroll. More than $100 million in mortgage liabilities tied to properties like Trump Tower and the Doral Golf Club. Those staggering judgments are marked as 'stayed pending appeal,' indicating they haven't yet come due, but they remain looming shadows over Trump's presidency. The sweet smell of success - ocne spritz of Trump's cologne and you'll smell like a billionaire - or at least someone who votes for one Trump's digital trading card collection is seen during its release in 2022 Trump made $3 million from his 'Save America' coffee table book A 234-page document details Trump's various finances including income from family crypto firm along with seven-figures from guitars, sneakers, watches and books Despite not taking a penny of the $400,000 salary as president of the United States, Trump's income continues to soar. Beyond crypto, he collected: $3 million from his 'Save America' coffee table book $2.5 million from Trump-branded sneakers and cologne $1.3 million from 'The Greenwood Bible' $1.05 million for a line of '45' electric guitars Another $1.06 million from licensing his image for digital trading cards In total, the disclosure paints a portrait of a man earning more as president than many former leaders earn after leaving the White House - yet Trump appears to be doing it while still in office. The political implications of Trump's crypto venture are hard to ignore. World Liberty Financial has operated largely outside traditional financial oversight, offering governance tokens, staking rewards, and decentralized yield pools tied to Trump-branded digital assets. Trump's holding of 15.75 billion governance tokens gives him significant sway over the platform's future - a fact that has alarmed government watchdogs and ethics officials alike. Of particular concern is the platform's close ties to Trump family members, the blurred lines between campaign promotion and product branding, and the mounting influence of crypto lobbying within the administration. But Trump's defenders argue it is simply an example of the free market in action. While World Liberty Financial and real estate remain the largest drivers of Trump's fortune, the president's speaking fees and royalties continue to stack up. The report lists more than $700,000 in speaking engagements, mostly paid for by conservative groups and international business forums. His real estate empire is also thriving again. In Florida alone, Trump's resorts and golf properties including Mar-a-Lago, Doral, and Jupiter, generated $217.7 million last year, according to the document. Even overseas, Trump-branded deals continue to deliver. A licensing agreement for a development in Vietnam brought in a $5 million reinforcing the idea that the Trump brand, far from fading, has gone global under his second term. By comparison, Vice President J.D. Vance's filing was a modest 15 pages as he disclosed $50,000 in earnings from his best-selling memoir Hillbilly Elegy and some smaller investment returns. The contrast underscores what many already knew: Trump is unlike any president in modern history, not just in style or policy, but in sheer wealth generation while in office. The Trump brand continues to be lucrative and as questions mount over ethics, influence, and the reach of crypto in US politics, one thing is clear: Donald Trump's second presidency isn't just about power but about profit.
