Ford CEO says rare earths shortage forced it to shut factory
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.
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 DailyMail.com that rare-earth magnets will likely be exempt from American tariffs under the new deal. 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 DailyMail.com. '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.' A representative for Ford didn't immediately respond to DailyMail.com's request for comment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
19 minutes ago
- Daily Mail
EXCLUSIVE How JD Vance is embracing a new 'peacekeeper' role between Trump, Musk and other top advisors
As the battle between Elon Musk and President Donald Trump escalated on social media on Friday, the president pulled Vice President JD Vance aside to coordinate their response. Vance was preparing a trip to Nashville, Tennessee, for an interview with podcast comedian Theo Von, and wanted to be prepared for the proper response to Musk. While the president took a harder edge against Musk on social media and while speaking to reporters in the Oval Office, he wanted the vice president to be more diplomatic, sources familiar with the exchange told the Daily Mail. By the time he entered the podcast studio in Nashville, however, the feud had escalated to new heights. As Von described it to Vance, 'the fu**ing s**t missile is in the cannon.' Von's audience was captivated as they watched Vance confronted in real time with posts from Musk declaring that Trump's name was in the Epstein files and even endorsed posts on X calling for Trump to be impeached to make him the president. Vance dismissed Musk's claim as 'totally BS' and affirmed he would remain loyal to the president first. At the same time, however, he praised Musk as 'incredible entrepreneur' and 'really good' even though he said it was a 'huge mistake' for him to go after the president that way. But the vice president was also optimistic that Musk could patch up his relationship with Trump. 'I hope that eventually Elon kind of comes back into the fold,' he said. Vance was puzzled by the exchanges but made excuses for Musk's behavior, describing him as 'an emotional guy' and whose 'heart is in the right place.' By Friday, Vance joined White House chief of staff Susie Wiles to speak with Musk to help smooth things over after the very public blowup. 'The last four months of my life I've probably had a hundred calls with Elon Musk,' he confirmed to reporters after Musk admitted publicly that some of his attacks on Trump had gone 'too far.' For Vance, a natural successor to Trump, it made sense to heal the relationship with the world's richest man if he ever wants to be president. But Vance indicated he really wanted to heal the relationship for the good of the country and for the good of his friend. 'I think that if he and the president are in some blood feud, most importantly it's going to be bad for the country but I…don't think it's going to be good for Elon either,' he said to Von. It was a rare display of diplomacy for the vice president, who spends a lot of his time on the global stage picking fights with journalists and politicians like Gavin Newsom on social media. But his longstanding relationship with Musk helped smooth over the very public blowup with the president. Vance first met Musk in June 2023, according to reports, as they were introduced by tech investor David Sacks, long before the native son of Ohio kicked off his political career by running for senate. Musk also reportedly supported Vance as his preferred candidate for Trump's running mate, describing him as the 'smartest' of the potential vice presidents. In the early days of the administration, Musk praised Vance on social media as the 'Best VP ever and our future President.' Vance began his vice presidency in a very public blowup during the Oval Office meeting with Ukrainian President Volodymr Zelensky and famously scolded Europe for their failure to commit to free speech. His trip to Greenland was less than diplomatic, as he delivered the unpopular message to the island that it was time to team up with the United States. But in recent weeks, the vice president's job has required him to be more of a diplomat. On Tuesday, residents of Butte Montana was surprised to see Air Force Two land at their small airport and a motorcade for the vice president was spotted driving out into the country. As tensions between Iran and Israel escalated, Vance visited the Murdoch Ranch in Dillon Montana, roughly 70 miles south. Vance met with Rupert and Lachlan Murdoch and a group of other Fox News executives for dinner, according to reports. The diplomatic visit took place even after his political advisors chaffed as Murdoch's media outlets were highly critical of his political record in the Summer 2024 as President Trump was still ruminating on his choice for vice president. It was no secret that Murdoch wanted to see former North Dakota Gov. Doug Burgum to be Trump's choice, as his media outlets spent significant resources criticizing Vance's anti-war views. The vice president's office did not respond to the Daily Mail's requests for comment. Although Vance's time in the Senate was short, he developed many relationships that have served the Trump administration well. His personal touch with his former senate colleagues helped sooth some of the concerns that they had with the president's more controversial picks for his cabinet. Prior to his departure for Montana, JD Vance traveled to Capitol Hill on Tuesday meet with Republican senator Ron Johnson of Wisconsin. Johnson was unhappy with the president's Big Beautiful Bill that was currently in negotiations with the Senate, but after Vance met wit the senator, the White House signaled they were more optimistic about getting him on board. Unlike the president's movements, Vance's schedule remains mostly private allowing him to have the flexibility to have private meetings and move more quickly with his travel. The job also runs into unexpected territory. Just weeks after visiting Indian Prime Minister Narendra Modi with his wife and children, Vance found himself contacting Modi to help ward off a war between Pakistan and India. In June, Vance also met with an all-party delegation from India to discuss ongoing tensions with Pakistan and possible business opportunities. Vance also met with political activist Laura Loomer, and although the contents of the meeting remained private, there were no political fireworks after the meeting, suggesting their exchange was cordial enough to stay out of the headlines. When the Papal conclave resulted in the election of Pope Leo XIV, an American, Trump asked Vance to lead the American delegation. Despite the pope's previous criticism of both Vance and Trump on social media, the delegation was successful as a smiling Vance and Secretary of State Marco Rubio posed for pictures with the American pontiff. Unlike many modern vice presidents who can go days without hearing directly from the president, Vance frequently communicates with Trump, people familiar with his interactions with the president say. Vance is careful about not stepping out ahead of the president, and remaining tactful in his communications about what he is thinking. His role as a jack-of-all trades vice president continues, as he continues his work confident that he has the president's trust. 'I know the president pretty well and I knew that he had a lot of trust in me, the role of the vice president is very derivative of what the president is doing,' Vance told Von while discussing his job. 'So if the president has trust in you and gives you a task and just lets you go and do it, that's kind of what your job is.'
The Independent
an hour ago
- The Independent
Trump made $10million selling guitars, bibles, watches and sneakers - but his crypto firm was the most profitable of all
President Donald Trump made over $10 million in the last year selling watches, sneakers, bibles and guitars, but his stake in a cryptocurrency platform was the most profitable of all. Trump's financial disclosure report, released Friday by the Office of Government Ethics, lays bare the vast wealth of the president and his family. The president has made $57,355,532 from his stake in World Liberty Financial, the cryptocurrency platform. His $TRUMP meme coin was not part of the disclosure report because it only launched in January, but is estimated to have earned $320 million in fees. The president has also made millions in license fees, the 234-long disclosure report shows. By comparison, former President Joe Biden's 2024 filing was 11 pages. Trump's Mar-a-Lago estate and members-only club in Palm Beach brought in more than $50 million, according to the filing, which appears to cover the 2024 calendar year. Other items raking it in for Trump include 'Trump Watches,' that made $2.8 million, 'Save America' coffee table books that brought in $3 million, and Trump sneakers and fragrances which made $2.5 million. Sales of the Greenwood Bible made $1,306,035 and '45' guitars made $1,055,100. Trump launched the 'limited edition' American Eagle-branded electric and acoustic guitars in November last year, retailing from $1,500 to as much as $10,500. And earlier in 2024, Trump also unveiled his 'Never Surrender' high-top shoes for $399. The president has never shied away from pushing his merchandise on supporters, despite critics accusing him of shameless grift. His cryptocurrency venture has come under the spotlight recently. According to a Financial Times report last month, Trump's media company is planning to raise $3 billion to spend on Bitcoin and other cryptocurrencies. Trump Media & Technology Group, which owns the Truth Social app, aims to raise $2 billion in fresh equity and $1 billion in a convertible bond, according to the report. The move is the latest potential conflict of interest that has seen Trump pursue policies inside the White House that may financially benefit him and his family outside of it. Last month the president also hosted 200 of the largest investors in the $TRUMP memecoin at a personal banquet at his Virginia golf club — a move that one special interest watchdog called 'nakedly corrupt.'
Auto Blog
3 hours ago
- Auto Blog
GM Hints at New Affordable Next-Gen EV Made in U.S.
GM has shared info on its development of a new next-gen affordable EV as it ramps up U.S. production with a $4 billion investment. GM's Fairfax, Kansas plant to host automaker's affordable EVs General Motors (GM) has announced plans to develop and build an affordable next-gen electric vehicle (EV) at its Fairfax, Kansas, plant. While Chevy's new Bolt EV is entering production by the end of the year at the same Kansas facility, it's unclear whether the up-and-coming next-gen model is part of the Bolt family or a new lineup. GM's president, Mark Reuss, said in October the 2027 Bolt EV's 'price isn't final yet,' while adding 'it [2027 Bolt EV] will be priced only slightly higher than the 2023 Bolt, which started at $28,795, and it will just be one member of a family on the Bolt, including an even lower cost option,' according to GM Authority. The average transaction price (ATP) for a new EV in May was $57,734, Kelley Blue Book reports. Chevy's 2027 Bolt will be North America's first Ultium-based model with lithium iron phosphate (LFP) batteries, helping the model sell at lower prices than ones with nickel manganese cobalt batteries. Despite details on the 2027 Bolt remaining limited, its release around mid-2026 means that Chevy is likely months away from revealing the model. GM's ambitious U.S. production plans are taking shape News of the affordable EV in development arrives after GM revealed plans to invest around $4 billion in U.S. production for gas-powered and electric models over the next two years. Domestic manufacturing investments should help GM mitigate the impacts of President Trump's tariffs, which are projected to cost the automaker up to $5 billion in 2025. GM's $4 billion investment will allow the company to manufacture over two million vehicles in the U.S. annually. In addition to making a next-gen affordable EV and the 2027 Chevy Bolt, GM's Fairfax, Kansas plant will support the gas-powered Chevy Equinox's production starting in mid-2027. Equinox sales increased 30% year-over-year during Q1. Separate GM U.S. production facilities include Orion Assembly in Orion Township, Michigan, and Spring Hill Manufacturing in Spring Hill, Tennessee. Orion Assembly will take on gas-powered full-size SUVs and light-duty pickups, while Spring Hill Manufacturing will focus on the Chevy Blazer, the Cadillac LYRIQ and VISTIQ EVs, and the Cadillac XT5. GM's Factory ZERO in Detroit-Hamtramck, Michigan, will handle the Chevy Silverado EV, GMC Sierra EV, Cadillac ESCALADE IQ, and GMC HUMMER EV pickup and SUV production. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. 2022 Chevrolet Bolt EUV — Source: Chevrolet GM also confirmed plans last month to commercialize lithium manganese-rich (LMR) prismatic battery cells for future GM electric trucks and full-size SUVs. These cells will provide a 33% higher energy density compared to the best lithium iron phosphate (LFP)-based cells at a comparable cost. The new battery cells are expected to be a staple of the automaker's electric truck lineup, with over 400 miles of available range, while optimizing savings over their high-nickel pack counterpart, which currently supplies segment-leading range. An employee holds a full-size prototype LMR battery cell at the General Motors Wallace Battery Cell Innovation Center. — Source: Steve Fecht for General Motors Final thoughts Following GM's most recent production announcement, the biggest question is whether its next-gen affordable EV will be part of the Chevy Bolt EV family or a new lineup. We also don't know whether the 2027 Bolt EV, which is returning after a three-year hiatus, will revive its hatchback configuration or if the model will adopt crossover styling reminiscent of its EUV version. Still, it's clear that GM's manufacturing strategy is prioritizing affordability in the EV segment and cost mitigation amid tariff policies. About the Author Cody Carlson View Profile
