Latest news with #ExplorerSUV
LeMonde
6 hours ago
- Automotive
- LeMonde
Rare earths: China's magnet war threatens global industry
The problem took a few weeks to show up on production lines. In early April, China imposed restrictions on the export of certain strategic metals – specifically, heavy rare earths and the magnets made from them. This has created a bottleneck for many industries worldwide that depend on these materials. The automotive sector has already begun to feel the impact. Japanese automaker Suzuki was forced to suspend production of its Swift model on May 26 due to a shortage of certain components – rare earth derivatives, according to the business daily Nikkei. At the end of May, Ford halted production of its Explorer SUV for a week after a supplier ran out of magnets made from rare earth alloys. Meanwhile, one of India's leading manufacturers, Bajaj, stated that if nothing changes, the shortage caused by China would "heavily impact" its production of electric vehicles in July. On Wednesday, June 4, the European automotive industry also revealed its exposure to this risk. Without citing specific cases, the European Association of Automotive Suppliers, Clepa, stated that "these restrictions have led to the closure of several production lines and factories in Europe, and the impact will continue to grow in the coming weeks as stocks are depleted." BMW confirmed that some of its suppliers had been affected. "We have shifted to crisis management," said Sylvain Broux, president of the Comité de liaison des industries fournisseurs de l'automobile (CLIFA) in France, while Jean-Louis Pech, president of the Fédération des industries des équipements pour véhicules, described an "economic war in which Europe also has arguments to put forward."
Yomiuri Shimbun
6 hours ago
- Automotive
- Yomiuri Shimbun
China issues rare earth licenses to suppliers of top 3 US automakers, sources say
Reuters file photo Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu province, China October 31, 2010. BEIJING/WASHINGTON, June 6 (Reuters) – China has granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers, two sources familiar with the matter said, as supply chain disruptions begin to surface from Beijing's export curbs on those materials. At least some of the licenses are valid for six months, the two sources said, declining to be named because the information is not public. It was not immediately clear what quantity or items are covered by the approval or whether the move signals China is preparing to ease the rare-earths licensing process, which industry groups say is cumbersome and has created a supply bottleneck. China's decision in April to restrict exports of a wide range of rare earths and related magnets has tripped up the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. China's dominance of the critical mineral industry, key to the green energy transition, is increasingly viewed as a key point of leverage for Beijing in its trade war with U.S. President Donald Trump. China produces around 90% of the world's rare earths, and auto industry representatives have warned of increasing threats to production due to their dependency on it for those parts. Suppliers of three big U.S. automakers, General Motors, GM.N, Ford F.N and Jeep-maker Stellantis got clearance for some rare earth export licenses on Monday, one of the two sources said. GM and Ford each declined to comment. Stellantis said it is working with suppliers 'to ensure an efficient licensing process' and that so far the company has been able to 'address immediate production concerns without major disruptions.' China's Ministry of Commerce did not immediately respond to a faxed request for comment. China's critical-mineral export controls have become a focus on Trump's criticism of Beijing, which he says has violated the truce reached last month to roll back tariffs and trade restrictions. On Thursday, Trump and Chinese President Xi Jinping had a lengthy phone call to iron out trade differences. Trump said in social-media post that 'there should no longer be any questions respecting the complexity of Rare Earth products.' Both sides said teams will meet again soon. U.S. auto companies are already feeling the impact of the restrictions. Ford F.N shut down production of its Explorer SUV at its Chicago plant for a week in May because of a rare-earth shortage, the company said. The approval for the auto suppliers follows a green light granted to a U.S. electronics firm's suppliers last week and another one issued earlier this week to suppliers of a U.S. non-auto company, the first person said, declining to name the companies. 'We have to give the Chinese the benefit of the doubt that they're working through this. It's up to them to show that they are not weaponizing it,' said the person. Reuters reported on Wednesday that China has introduced a tracking system for its rare earth magnet sector in a move to improve its control over the sector and crackdown on smuggling.
Time of India
7 hours ago
- Automotive
- Time of India
China okays rare earth licences to suppliers of top three US auto companies
China has granted temporary export licenses to rare-earth suppliers of the top three US automakers, two sources familiar with the matter said, as supply chain disruptions begin to surface from Beijing's export curbs on those materials. At least some of the licenses are valid for six months, the two sources said, declining to be named because the information is not public. It was not immediately clear what quantity or items are covered by the approval or whether the move signals China is preparing to ease the rare-earths licensing process, which industry groups say is cumbersome and has created a supply bottleneck. China's decision in April to restrict exports of a wide range of rare earths and related magnets has tripped up the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. China's dominance of the critical mineral industry, key to the green energy transition, is increasingly viewed as a key point of leverage for Beijing in its trade war with US President Donald Trump . China produces around 90% of the world's rare earths, and auto industry representatives have warned of increasing threats to production due to their dependency on it for those parts. Suppliers of three big US automakers, General Motors , Ford and Jeep-maker Stellantis got clearance for some rare earth export licenses on Monday, one of the two sources said. GM and Ford each declined to comment. Stellantis said it is working with suppliers "to ensure an efficient licensing process" and that so far the company has been able to "address immediate production concerns without major disruptions." China's Ministry of Commerce did not immediately respond to a faxed request for comment. China's critical-mineral export controls have become a focus on Trump's criticism of Beijing, which he says has violated the truce reached last month to roll back tariffs and trade restrictions. On Thursday, Trump and Chinese President Xi Jinping had a lengthy phone call to iron out trade differences. Trump said in social-media post that "there should no longer be any questions respecting the complexity of Rare Earth products." Both sides said teams will meet again soon. US auto companies are already feeling the impact of the restrictions. Ford shut down production of its Explorer SUV at its Chicago plant for a week in May because of a rare-earth shortage, the company said.
Time of India
15 hours ago
- Automotive
- Time of India
China okays rare earth licences to suppliers of top three US auto companies
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel BEIJING/WASHINGTON: China has granted temporary export licenses to rare-earth suppliers of the top three US automakers, two sources familiar with the matter said, as supply chain disruptions begin to surface from Beijing's export curbs on those least some of the licenses are valid for six months, the two sources said, declining to be named because the information is not public. It was not immediately clear what quantity or items are covered by the approval or whether the move signals China is preparing to ease the rare-earths licensing process, which industry groups say is cumbersome and has created a supply bottleneck. China's decision in April to restrict exports of a wide range of rare earths and related magnets has tripped up the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the dominance of the critical mineral industry, key to the green energy transition, is increasingly viewed as a key point of leverage for Beijing in its trade war with US President Donald Trump . China produces around 90% of the world's rare earths, and auto industry representatives have warned of increasing threats to production due to their dependency on it for those of three big US automakers, General Motors Ford and Jeep-maker Stellantis got clearance for some rare earth export licenses on Monday, one of the two sources and Ford each declined to comment. Stellantis said it is working with suppliers "to ensure an efficient licensing process" and that so far the company has been able to "address immediate production concerns without major disruptions."China's Ministry of Commerce did not immediately respond to a faxed request for comment. China's critical-mineral export controls have become a focus on Trump's criticism of Beijing, which he says has violated the truce reached last month to roll back tariffs and trade restrictions. On Thursday, Trump and Chinese President Xi Jinping had a lengthy phone call to iron out trade differences. Trump said in social-media post that "there should no longer be any questions respecting the complexity of Rare Earth products." Both sides said teams will meet again auto companies are already feeling the impact of the restrictions. Ford shut down production of its Explorer SUV at its Chicago plant for a week in May because of a rare-earth shortage, the company said.
Straits Times
16 hours ago
- Automotive
- Straits Times
China issues rare earth licenses to suppliers of top 3 US automakers, sources say
New cars are seen in the yard of the General Motors factory in Gravataí, Rio Grande do Sul, Brazil. PHOTO: REUTERS BEIJING/WASHINGTON - China has granted temporary export licenses to rare-earth suppliers of the top three US automakers, two sources familiar with the matter said, as supply chain disruptions begin to surface from Beijing's export curbs on those materials. At least some of the licenses are valid for six months, the two sources said, declining to be named because the information is not public. It was not immediately clear what quantity or items are covered by the approval or whether the move signals China is preparing to ease the rare-earths licensing process, which industry groups say is cumbersome and has created a supply bottleneck. China's decision in April to restrict exports of a wide range of rare earths and related magnets has tripped up the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. China's dominance of the critical mineral industry, key to the green energy transition, is increasingly viewed as a key point of leverage for Beijing in its trade war with US President Donald Trump. China produces around 90 per cent of the world's rare earths, and auto industry representatives have warned of increasing threats to production due to their dependency on it for those parts. Suppliers of three big US automakers, General Motors, Ford and Jeep-maker Stellantis got clearance for some rare earth export licenses on June 2, one of the two sources said. GM and Ford each declined to comment. Stellantis said it is working with suppliers 'to ensure an efficient licensing process' and that so far the company has been able to 'address immediate production concerns without major disruptions.' China's Ministry of Commerce did not immediately respond to a faxed request for comment. China's critical-mineral export controls have become a focus on Mr Trump's criticism of Beijing, which he says has violated the truce reached last month to roll back tariffs and trade restrictions. On June 5, Mr Trump and Chinese President Xi Jinping had a lengthy phone call to iron out trade differences. Mr Trump said in social-media post that 'there should no longer be any questions respecting the complexity of Rare Earth products.' Both sides said teams will meet again soon. US auto companies are already feeling the impact of the restrictions. Ford shut down production of its Explorer SUV at its Chicago plant for a week in May because of a rare-earth shortage, the company said. The approval for the auto suppliers follows a green light granted to a US electronics firm's suppliers last week and another one issued earlier this week to suppliers of a US non-auto company, the first person said, declining to name the companies. 'We have to give the Chinese the benefit of the doubt that they're working through this. It's up to them to show that they are not weaponizing it,' said the person. Reuters reported on June 4 that China has introduced a tracking system for its rare earth magnet sector in a move to improve its control over the sector and crackdown on smuggling. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
