6 days ago
Automotive angst as China's critical minerals export curbs take hold
Frank Fannon, a minerals industry consultant and former US assistant secretary of state for energy resources during Trump's first term, said the global disruptions are not shocking to those paying attention.
'I don't think anyone should be surprised how this is playing out. We have a production challenge (in the US) and we need to leverage our whole of government approach to secure resources and ramp up domestic capability as soon as possible. The time horizon to do this was yesterday,' Fannon said.
Diplomats, carmakers and other executives from India, Japan and Europe were urgently seeking meetings with Beijing officials to push for faster approval of rare earth magnet exports, sources told Reuters, as shortages threatened to halt global supply chains.
A business delegation from Japan will visit Beijing this month to meet the ministry of commerce over the curbs, and European diplomats from countries with big car industries have also sought "emergency" meetings with Chinese officials in recent weeks, Reuters reported.
India, where Bajaj Auto warned further delays in securing the supply of rare earth magnets from China could "seriously impact" electric vehicle production, is organising a trip for car executives in the next two to three weeks.
Last month the head of the trade group representing General Motors, Toyota, Volkswagen, Hyundai and other major carmakers raised similar concerns in a letter to the Trump administration.
"Without reliable access to the elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras," the Alliance for Automotive Innovation wrote in the letter.
