Latest news with #rareearthmagnets
Japan Times
3 days ago
- Automotive
- Japan Times
Carmakers warn China's rare-earth curbs could halt production
Global auto executives are sounding the alarm on an impending shortage of rare-earth magnets from China — used in everything from windshield-wiper motors to anti-lock braking sensors — that could force the closure of car factories within weeks. In a previously unreported May 9 letter to Trump administration officials, the head of the trade group representing General Motors, Toyota, Volkswagen, Hyundai and other major automakers raised urgent concerns. "Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras," the Alliance for Automotive Innovation wrote the Trump administration. The letter, which also was signed by MEMA, The Vehicle Suppliers Association, added that, without those essential automotive components, it would only be a matter of time before U.S. vehicle factories are disrupted. "In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines," the groups said. Both Alliance CEO John Bozzella and MEMA CEO Bill Long said on Friday the situation was not resolved and remained a concern. They expressed gratitude for the Trump administration's high-level engagement to prevent disruption to U.S. auto production and the supply chain. Bozzella noted that the automotive issue was on the agenda during Treasury Secretary Scott Bessent and U.S. Trade Rep. Jamieson Greer's talks with their Chinese counterparts in Geneva earlier this month. Greer told CNBC on Friday that China had agreed to lift restrictions on the exports of rare-earth magnets to U.S. companies and was not moving fast enough to grant access for key U.S. industries. "We haven't seen the flow of some of those critical minerals as they were supposed to be doing." China — which controls over 90% of global processing capacity for the magnets used in everything from automobiles and fighter jets to home appliances — imposed restrictions in early April requiring exporters to obtain licenses from Beijing. Rare-earth magnet exports from China halved in April as companies grappled with an opaque application process for permits that sometimes require hundreds of pages of documents. In a social-media post Friday, President Donald Trump accused China of violating terms of a deal reached this month to temporarily dial back tariffs and other trade restrictions. "China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH U.S.," Trump said in a post on his Truth Social platform. China's embassy in Washington responded by saying it was the U.S. that was abusing export controls in the semiconductor sector. A U.S. official with knowledge of the talks said that only tariffs and Chinese non-tariff countermeasures were covered in Geneva talks, and that U.S. export controls were not part of the deal. The official also expressed frustration that Beijing appeared to be moving slowly on promises to issue rare-earth export licenses, which could kick start export control retaliation by Washington if automakers vulnerable to shortages of the minerals are forced to halt production. While a handful of licenses have been granted, including to some Volkswagen suppliers, Indian automakers say they still have received none and will have to stop production in early June. German auto parts maker Bosch said this week that its suppliers have been bogged down by China's more-rigorous procedures to receive export licenses. A Bosch spokesperson described the process as "complex and time-consuming, partly due to the need to collect and provide a lot of information."
Reuters
3 days ago
- Automotive
- Reuters
Exclusive: China magnet pinch threatens car production, automakers warn
WASHINGTON, May 30 (Reuters) - U.S. auto executives are sounding the alarm on an impending shortage of rare-earth magnets from China – used in everything from windshield-wiper motors to anti-lock braking sensors – that could force the closure of car factories within weeks. In a previously unreported May 9 letter to Trump administration officials, the head of the trade group representing General Motors (GM.N), opens new tab, Toyota (7203.T), opens new tab, Volkswagen ( opens new tab, Hyundai ( opens new tab and other major automakers raised urgent concerns. "Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras," the Alliance for Automotive Innovation wrote the Trump administration. The letter, which also was signed by MEMA, The Vehicle Suppliers Association, added that, without those essential automotive components, it would only be a matter of time before U.S. vehicle factories are disrupted. "In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines," the groups said. Both Alliance CEO John Bozzella and MEMA CEO Bill Long told Reuters on Friday the situation was not resolved and remained a concern. They expressed gratitude for the Trump administration's high-level engagement to prevent disruption to U.S. auto production and the supply chain. Bozzella noted that the automotive issue was on the agenda during Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer's talks with their Chinese counterparts in Geneva earlier this month. Greer told CNBC on Friday that China had agreed to lift restrictions on the exports of rare-earth magnets to U.S. companies and was not moving fast enough to grant access for key U.S. industries. "We haven't seen the flow of some of those critical minerals as they were supposed to be doing." China - which controls over 90% of global processing capacity for the magnets used in everything from automobiles and fighter jets to home appliances - imposed restrictions in early April requiring exporters to obtain licenses from Beijing. Rare-earth magnet exports from China halved in April as companies grappled with an opaque application process for permits that sometimes require hundreds of pages of documents. While a handful of licenses have been granted, including to some Volkswagen suppliers, Indian automakers say they still have received none and will have to stop production in early June. German auto-parts maker Bosch said this week that its suppliers have been bogged down by China's more-rigorous procedures to receive export licenses. A Bosch spokesperson described the process as "complex and time-consuming, partly due to the need to collect and provide a lot of information."
Bloomberg
4 days ago
- Automotive
- Bloomberg
China Magnet Curbs Threaten India Auto Output, Bajaj Warns
India's vehicle production will take a hit as early as July if China doesn't resume shipments of rare earth magnets, Bajaj Auto Ltd. Executive Director Rakesh Sharma warned, highlighting the mounting risk to the industry from Beijing's export curbs. Bajaj Auto is India's largest electric two-wheeler maker and uses neodymium-based rare earth magnets in its electric motors. India is heavily reliant on imports from China, the world's dominant supplier, but the Chinese introduced tighter controls on exports of those critical components in April.
Reuters
26-05-2025
- Business
- Reuters
Chinese customs caution slows some rare earth magnet exports, sources say
BEIJING, May 26 (Reuters) - Chinese customs are holding up some shipments of lower-performance rare earth magnets used in appliances and consumer electronics because of confusion over how to apply Beijing's export curbs, according to three sources. Rare earth magnets blend elements from the family of 17 elements and the mix determines performance. High-performance types go into cars, wind turbines and fighter jets with weaker ones used in consumer electronics and household appliances. However, China's customs website only lists a single code for rare earth magnets, despite their different chemistries. When Beijing restricted exports of several high-performance types along with other rare earths in April, it excluded some low-performance ones. Customs officials have nonetheless barred at least two shipments because they share the same code identifier, said two sources familiar with the matter. The shipments had still not left China even after the exporters provided documents showing there were no curbs on the types of magnets involved, said the sources who spoke on condition of anonymity, as the matter is a sensitive one. China's commerce ministry and customs did not respond to Reuters request for comment. European auto parts and appliance maker Bosch said bottlenecks in the supply of rare earths key for both electric motors and consumer goods were affecting its suppliers, who had to furnish a lot of detailed information to get export licences. "The process for our suppliers to apply for export licences for various rare earths ... since April, is complex and time-consuming, partly due to the need to collect and provide a lot of information," a Bosch spokesperson said. Not all exports are affected by the customs delays, however, with officials of appliance makers Electrolux and Smeg both telling Reuters they were not facing issues. Customs data shows China's exports of permanent magnets fell 51% to 2,626 tons in April, the first month of data following the curbs. Exports were 15,267 tons in the year's first quarter.
