Latest news with #rareEarthMagnets
Bloomberg
an hour ago
- Politics
- Bloomberg
Xi Bets Trump Detente Will Lead to Future Wins on Chips, Tariffs
In the early hours of Wednesday, Donald Trump declared that Xi Jinping was 'VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!' Some 36 hours later, the US leader said he got what he wanted: A commitment to restore the flow of rare earth magnets. It's less clear what Xi got in return, apart from putting a lid on further punitive US measures. One of the few clear takeaways appeared to be an assurance for the US to welcome Chinese students, a major issue in China but also not one that would explain why Xi got on the phone after making Trump wait for months.
Reuters
2 days ago
- Automotive
- Reuters
Autoliv sees no production stops despite China rare earth curbs
COPENHAGEN, June 4 (Reuters) - The CEO of Swedish Autoliv (ALV.N), opens new tab, , the world's biggest maker of airbags and seatbelts, said on Wednesday that the company did not currently have any production halts due to Chinese restrictions on rare earth magnets.
Daily Mail
3 days ago
- Automotive
- Daily Mail
Carmakers warn Chinese tariffs could bring US manufacturing to a stop
Every automotive part that enters the US is slapped with a 25 percent tariff. The tariffs, imposed by President Donald Trump, are expected to reinvigorate an automotive manufacturing sector in the US that has experienced a decades-long malaise. But China responded to the auto tariff — and its separate, even higher product levies — by stopping nearly all trade on rare earth magnets. The magnets are indispensable for modern car production. They're used in dozens of vehicle parts, including brakes, seats, screens, and ignitions. But more than two decades after domestic magnet-making factories migrated to China, the US now produces almost none. Without access to Chinese supplies, factories across the Midwest and the South could soon face shutdowns, automakers and analysts are warning. And US carmakers are running out. 'This could be similar to the chip shortage where automakers simply can't produce the vehicle if the rare earths ban remains in place,' Seth Goldstein, a strategist and Tesla expert for MorningStar, told 'Tesla is planning to remove rare earths magnets from their EV motors, so the company should have a limited impact on its EV sales.' Beijing officials stopped sending US automakers the magnets in early April. The materials, which were last built in the US at scale in the late 1990s, are scattered throughout vehicles. A modern, power-adjusting seat can use as many as 12 individual magnets. In May, the trade groups representing some of the biggest automakers in the US — including General Motors, Toyota, Volkswagen, and Hyundai — sent a letter to President Trump warning about the potential US manufacturing issues because of the dwindling magnet supply. 'Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components,' the letter from the Alliance for Automotive Innovation said. 'In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines.' Meanwhile, the problem could get worse, even if Beijing officials re-open the magnet floodgates. Some Chinese producers have suspended operations altogether, waiting for export approvals. The resulting delays have jammed up supply chains, leaving automakers scrambling to secure critical inputs. The trade blockages are also colliding with dwindling supplies on new vehicle lots. Some car companies are facing shortages of product on their new vehicle lots: Toyota, for example, has fewer than 30 days' worth of vehicles at many of their American dealerships. These compounding issues could send the price for remaining vehicles further through the roof as demand outstrips supply, and American manufacturing can't produce enough. It currently costs the average American more than $49,000 to drive a new vehicle off a dealership lot. Goldstein pointed out that there are signs for hope: Saudi Arabia, a country that is increasing trade relations with the US, is investing in rare earth production. 'Any shortage could prove temporary,' Goldstein added. But for now, the manufacturing impact extends well beyond cars, too. Factory automation, semiconductors, and critical military components all rely on high-performance magnets made from rare earth elements. President Trump recently lashed out against Chinese officials for exploiting these gaps in American production. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump said in a post on his Truth Social platform. Last week, US Treasury Secretary Scott Bessent (pictured) said he hoped that Trump and top Chinese officials would convene to discuss a new truce in the ongoing trade war. 'I believe we'll see something very soon,' he reassured CBS News. On Monday, car stocks took a major hit as news about the tariffs and magnet controls permeated Wall Street. Ford and GM both lost over 4 percent of their share price by mid-day trading.
Daily Mail
3 days ago
- Automotive
- Daily Mail
Auto companies worry China's tariff response will STOP all US car production in days
Every automotive part that enters the US is slapped with a 25 percent tariff. The tariffs, imposed by President Donald Trump, are expected to reinvigorate an automotive manufacturing sector in the US that has experienced a decades-long malaise. But China responded to the auto tariff — and its separate, even higher product levies — by stopping nearly all trade on rare earth magnets. The magnets are indispensable for modern car production. They're used in dozens of vehicle parts, including brakes, seats, screens, and ignitions. But more than two decades after domestic magnet-making factories migrated to China, the US now produces almost none. Without access to Chinese supplies, factories across the Midwest and the South could soon face shutdowns, automakers and analysts are warning. And US carmakers are running out. 'This could be similar to the chip shortage where automakers simply can't produce the vehicle if the rare earths ban remains in place,' Seth Goldstein, a strategist and Tesla expert for MorningStar, told 'Tesla is planning to remove rare earths magnets from their EV motors, so the company should have a limited impact on its EV sales.' Beijing officials stopped sending US automakers the magnets in early April. The materials, which were last built in the US at scale in the late 1990s, are scattered throughout vehicles. A modern, power-adjusting seat can use as many as 12 individual magnets. In May, the trade groups representing some of the biggest automakers in the US — including General Motors, Toyota, Volkswagen, and Hyundai — sent a letter to President Trump warning about the potential US manufacturing issues because of the dwindling magnet supply. 'Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components,' the letter from the Alliance for Automotive Innovation said. 'In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines.' Meanwhile, the problem could get worse, even if Beijing officials re-open the magnet floodgates. Some Chinese producers have suspended operations altogether, waiting for export approvals. Car companies have been grappling with how to react to tariffs - now, they might have to deal with dwindling parts supplies The resulting delays have jammed up supply chains, leaving automakers scrambling to secure critical inputs. The trade blockages are also colliding with dwindling supplies on new vehicle lots. Some car companies are facing shortages of product on their new vehicle lots: Toyota, for example, has fewer than 30 days' worth of vehicles at many of their American dealerships. These compounding issues could send the price for remaining vehicles further through the roof as demand outstrips supply, and American manufacturing can't produce enough. It currently costs the average American more than $49,000 to drive a new vehicle off a dealership lot. Goldstein pointed out that there are signs for hope: Saudi Arabia, a country that is increasing trade relations with the US, is investing in rare earth production. 'Any shortage could prove temporary,' Goldstein added. But for now, the manufacturing impact extends well beyond cars, too. Factory automation, semiconductors, and critical military components all rely on high-performance magnets made from rare earth elements. President Trump recently lashed out against Chinese officials for exploiting these gaps in American production. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump said in a post on his Truth Social platform. Last week, US Treasury Secretary Scott Bessent said he hoped that Trump and top Chinese officials would convene to discuss a new truce in the ongoing trade war. 'I believe we'll see something very soon,' he reassured CBS News.
Reuters
28-05-2025
- Automotive
- Reuters
China's magnet curbs risk halting Indian car production
NEW DELHI, May 28 (Reuters) - Indian auto production could grind to a halt within days due to Chinese export restrictions on rare earth magnets, according to company executives and documents from industry groups, which want the government to lobby Beijing to relax the curbs. China, which controls over 90% of global processing capacity for the magnets used for automobiles, clean energy and home appliances, enacted restrictions in April requiring companies to obtain import permits from Beijing. Though a response to U.S. President Donald Trump's tariffs, the export curbs will impact automakers globally. And Indian companies say a disruption in the world's third-largest car market is imminent due to rapidly depleting stocks and the onerous process of obtaining new supplies. In a meeting with commerce ministry officials last week, the Society of Indian Automobile Manufacturers (SIAM), an industry group, said inventories at auto part makers are expected to run out by the end of May, according to an unreleased document seen by Reuters. SIAM was seeking the intervention of Prime Minister Narendra Modi's government to help access magnets held at Chinese ports since April 4. "Starting end May or early June, auto industry production is expected to come to a grinding halt," SIAM said in the document, which was presented during a May 19 meeting attended by executives from Maruti Suzuki, Mahindra & Mahindra and Tata Motors. While China has cleared exports from some magnet producers, including Volkswagen ( opens new tab suppliers, three auto industry executives told Reuters they fear strained relations between Beijing and New Delhi could hurt India's chances of getting quick approvals. The company officials asked not to be identified due to the sensitivity of the issue. When asked about the magnet restrictions' impact in India, China's embassy in New Delhi said it was "actively facilitating and streamlining compliant trade" in accordance with legal and regulatory requirements. "China's lawful imposition of export controls on these items aims to better safeguard national security and interests," it said in a statement. Mahindra ( opens new tab, Maruti ( opens new tab, Tata ( opens new tab, SIAM and India's commerce and external affairs ministries did not respond to requests for comment. Neither did the Auto Component Manufacturers Association of India (ACMA), which also attended the meeting. While rare earth magnets are a crucial component in electric vehicle motors, they are also required for parts like power windows and audio speakers used in traditional cars. And though the measures imposed by Beijing are meant to focus on high-performance exports, shipments of low-end magnets are also being held up at ports due to confusion around implementing the restrictions. China's exports of permanent magnets fell 51% year on year to 2,626 tons in April, the first month of data following the curbs, customs data shows. India's auto sector imported 460 tons of rare earth magnets, mostly from China, in the fiscal year ended March 31 and expects to import 700 tons worth $30 million this year, according to industry estimates. "Though the cost of imported rare earth magnets is miniscule in vehicles, risk is vehicles cannot be manufactured even if we are short of one component," SIAM and ACMA said in a separate document submitted to the Indian government. Indian companies are worried by the complexity of an import process that requires approvals from Indian ministries and documents including so-called "end-use certificates" stating the magnets are not for military purposes, the SIAM document said. Those documents must be verified by the Chinese embassy in New Delhi and sent to companies' Chinese suppliers whereafter Beijing issues a licence, it added. India should endorse applications from importers "within hours", the SIAM document said, and push the Chinese embassy and commerce ministry to approve them "on an urgent basis".
