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TimesLIVE
5 days ago
- Automotive
- TimesLIVE
Ford struggles with supply of rare earth magnets, Farley tells Bloomberg News
Ford is struggling with supplies of rare earth magnets, the carmaker's CEO Jim Farley told Bloomberg News in an interview on Friday. China, which controls more than 90% of global rare earth processing capacity, imposed new export licensing rules in April, tightening supply to Western manufacturers of everything from cars and fighter jets to household appliances. Carmakers, especially those focused on EVs, are among the largest industrial consumers of rare earth materials. China granted temporary export licences to rare-earth suppliers of the top three US carmakers, including Ford, earlier this month, according to a Reuters report. But Farley told Bloomberg News the company continues to struggle. 'It's day to day,' Farley said. 'We have had to shut down factories. It's hand-to-mouth right now.' Ford did not immediately respond to Reuters' request for a comment. The company had previously shut down production of its Explorer SUV at its Chicago plant for a week in May because of a rare-earth shortage. Western countries have been trying to reduce reliance on Chinese rare earths by investing in alternative sources and refining capacity in places like Australia, Canada, and the US.
Miami Herald
12-06-2025
- Automotive
- Miami Herald
While Rivals Falter, Hyundai Has a Hidden Advantage
Hyundai has reportedly stockpiled a significant supply of rare earths used for an array of car parts as other automakers grapple with China's export restrictions on the elements. China mines 70% of the world's rare earth materials but processes and refines 90% of them. Vehicle parts such as automatic transmissions, throttle bodies, cameras, power steering, speakers, seat belts, lights, and more use magnets primarily made from rare earth materials. According to an unnamed source who attended a private Hyundai investor call and told Reuters about it, Hyundai's rare earth stockpile can last about a year, eliminating concerns of a near-term supply shortage. China's decision to restrict rare earth and related magnet exports dates back to April, when the country curbed its exports of dysprosium, gadolinium, scandium, terbium, samarium, yttrium, and lutetium rare earth elements by introducing a new licensing requirement. Hyundai reportedly increased its rare earth stockpile recently when the country relaxed its export restrictions, but declined to comment on whether it and its sister company, Kia, personally formed the reserve or if they sourced it from suppliers. Ford and BMW have already been impacted by the rare earth shortage. In May, Ford halted production on its Explorer SUV at its Chicago plant for a week. BMW said parts of its supplier network were disrupted, but its plants ran normally. Last week, China issued rare earth licenses to suppliers of the top 3 U.S. automakers, including General Motors (GM), Ford, and Stellantis. Some of the licenses are valid for six months. BMW and GM are working on motors with low-to-zero rare-earth content to avoid situations like this, but scaling production while managing costs remains challenging. "We must reduce our dependencies on all countries, particularly on a number of countries like China, on which we are more than 100% dependent," European Union Commissioner for Industrial Strategy Stephane Sejourne said, according to Reuters. Mathias Miedreich, board member for electrified propulsion at German automotive supplier ZF Friedrichshafen, expressed worries earlier this month that the rare earths bottleneck could resemble the auto industry's computer chip shortage during the COVID-19 pandemic, which subtracted millions of units from manufacturers' production. On Wednesday, President Trump said: "Our deal with China is done, subject to final approval with President Xi and me," adding that China will supply full magnets and any necessary rare earths upfront. The deal has been described as a framework agreement, but auto industry players in India have urged the country's government to accelerate Chinese approval of a rare earths deal. According to ET Times, Indian auto executives are awaiting confirmation for a meeting with China. The U.S. auto industry could encounter future troubles with China's rare earth exports, even with the recently announced framework, since China dominates the elements' global supply chain. GM appears to be in one of the best positions to avoid future rare earth export disruptions beyond the immediate term since it formed strategic alliances with two rare earth mineral processing companies four years ago for domestic rare earth sourcing and processing. The alliance's processed rare earth minerals were initially planned for GM's electric cars, and while they're not yet active, they could provide much-needed diversification in the supply chain. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
The Star
12-06-2025
- Business
- The Star
China's trump card against US
THE nation is counting on one crucial advantage as it seeks to grind out a deal to ease its high-stakes trade war with the United States – dominance in rare earths. Used in electric vehicles, hard drives, wind turbines and missiles, rare earth elements are essential to the modern economy and national defence. Here's a look at how rare earths have become a key sticking point in talks between the United States and China. Mining boom: 'The Middle East has oil. China has rare earths,' Deng Xiaoping, the late Chinese leader whose pro-market reforms set the country on its path to becoming an economic powerhouse, said in 1992. Since then, Beijing's heavy investment in state-owned mining firms and lax environmental regulations compared to other industry players have turned China into the world's top supplier. The country now accounts for 92% of global refined output, according to the International Energy Agency. But the flow of rare earths from China to manufacturers around the world has slowed after Beijing in early April began requiring domestic exporters to apply for a licence – widely seen as a response to US tariffs. Under the new requirements – which industry groups have said are complex and slow-moving – seven key elements and related magnets require Beijing's approval to be shipped to foreign buyers. Deep impact: Ensuring access to the vital elements has become a top priority for US officials in talks with Chinese counterparts, with the two sides meeting this week in London. 'The rare earth issue has clearly ... overpowered the other parts of the trade negotiations because of stoppages at plants in the United States,' said Paul Triolo, a technology expert at the Asia Society Policy Institute's Center for China Analysis, in an online seminar on Monday. That disruption, which forced US car giant Ford to temporarily halt production of its Explorer SUV, 'really got the attention of the White House', said Triolo. Officials from the two countries said on Tuesday that they had agreed on a 'framework' for moving forward on trade – with US Commerce Secretary Howard Lutnick expressing optimism that concerns over access to rare earths 'will be resolved' eventually. Rare earth advantage: The slowing of licence issuance has raised fears that more automakers will be forced to halt production while they await shipments. China's commerce ministry said over the weekend that as a 'responsible major country', it had approved a certain number of export applications, adding that it was willing to strengthen related dialogue with 'relevant countries'. But that bottleneck has highlighted Washington's reliance on Chinese rare earths for producing its defence equipment even as trade and geopolitical tensions deepen. An F-35 fighter jet contains over 400kg of rare earth elements, noted a recent analysis by Gracelin Baskaran and Meredith Schwartz of the Critical Minerals Security Program at the Center for Strategic and International Studies. 'Developing mining and processing capabilities requires a long-term effort, meaning the United States will be on the back foot for the foreseeable future,' they wrote. Playing catch up: The recent export control measures are not the first time China has leveraged its dominance of rare earths supply chains. After a 2010 maritime collision between a Chinese trawler and Japanese coast guard boats in disputed waters, Beijing briefly halted shipments of its rare earths to Tokyo. The episode spurred Japan to invest in alternative sources and improve stockpiling of the vital elements – with limited success. That is 'a good illustration of the difficulty of actually reducing dependence on China,' said Triolo, noting that in the 15 years since the incident, Japan has achieved only 'marginal gains'. The Pentagon is trying to catch up, with its 'mine-to-magnet' strategy aiming to ensure an all-domestic supply chain for the key components by 2027. The challenge facing Washington to compete with Beijing in rare earths is compounded by sheer luck: China sits on the world's largest reserves. 'Mineable concentrations are less common than for most other mineral commodities, making extraction more costly,' wrote Rico Luman and Ewa Manthey of ING in an analysis published on Tuesday. 'It is this complex and costly extraction and processing that make rare earths strategically significant,' they wrote. 'This gives China a strong negotiating position.' — AFP
Economic Times
11-06-2025
- Automotive
- Economic Times
Rare earths and magnets minerals elements: Why are these giving China edge in trade war with USA?
Rare-earth magnet Synopsis Rare earths and magnets minerals elements have hogged all the limelight during the US-China trade war. US-China trade deal has finally been chalked out, according to President Donald Trump. Analysts have claimed that China was counting on one crucial advantage as it strived to grind out a deal to ease its high-stakes trade war with the United States -- dominance in rare earths. Now question arises how rare earths have become a key sticking point in talks between the US and China. ADVERTISEMENT Rare Earths Minerals Elements Used in electric vehicles, hard drives, wind turbines and missiles, rare earth elements are essential to the modern economy and national defence, AFP reported. "The Middle East has oil. China has rare earths," Deng Xiaoping, the late Chinese leader whose pro-market reforms set the country on its path to becoming an economic powerhouse, said in 1992. Since then, Beijing's heavy investment in state-owned mining firms and lax environmental regulations compared to other industry players have turned China into the world's top supplier, as per AFP now accounts for 92 percent of global refined output, according to the International Energy the flow of rare earths from China to manufacturers around the world has slowed after Beijing in early April began requiring domestic exporters to apply for a licence -- widely seen as a response to US tariffs. ADVERTISEMENT Under the new requirements -- which industry groups have said are complex and slow-moving -- seven key elements and related magnets require Beijing's approval to be shipped to foreign buyers. Why Does USA Need Rare Earths? ADVERTISEMENT Ensuring access to the vital elements became a top priority for US officials in talks with Chinese counterparts."The rare earth issue has clearly... overpowered the other parts of the trade negotiations because of stoppages at plants in the United States," said Paul Triolo, a technology expert at the Asia Society Policy Institute's Center for China Analysis, in an online seminar on Monday. ADVERTISEMENT That disruption, which forced US car giant Ford to temporarily halt production of its Explorer SUV, "really got the attention of the White House", said reportedly rely on Chinese rare earths for producing its defence equipment even as trade and geopolitical tensions deepen. ADVERTISEMENT An F-35 fighter jet contains over 900 pounds (more than 400 kilograms) of rare earth elements, noted a recent analysis by Gracelin Baskaran and Meredith Schwartz of the Critical Minerals Security Program at the Center for Strategic and International Studies. China has Largest Reserves Pentagon is trying to catch up, with its "mine-to-magnet" strategy aiming to ensure an all-domestic supply chain for the key components by 2027. The challenge facing Washington to compete with Beijing in rare earths is compounded by sheer luck: China sits on the world's largest reserves. Q1. Who is President of USA?A1. President of USA is Donald Trump. Q2. What are usage of Rare earths and magnets? A2. Used in electric vehicles, hard drives, wind turbines and missiles, rare earth elements are essential to the modern economy and national defence, AFP reported. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates. Rare earths and magnets minerals elements: Why are these giving China edge in trade war with USA? Rare earths and magnets minerals elements: Why are these giving China edge in trade war with USA? 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Time of India
11-06-2025
- Business
- Time of India
Rare earths and magnets minerals elements: Why are these giving China edge in trade war with USA?
Live Events FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel US-China trade deal has finally been chalked out, according to President Donald Trump. Analysts have claimed that China was counting on one crucial advantage as it strived to grind out a deal to ease its high-stakes trade war with the United States -- dominance in rare earths. Now question arises how rare earths have become a key sticking point in talks between the US and in electric vehicles, hard drives, wind turbines and missiles, rare earth elements are essential to the modern economy and national defence, AFP reported."The Middle East has oil. China has rare earths," Deng Xiaoping, the late Chinese leader whose pro-market reforms set the country on its path to becoming an economic powerhouse, said in 1992. Since then, Beijing's heavy investment in state-owned mining firms and lax environmental regulations compared to other industry players have turned China into the world's top supplier, as per AFP now accounts for 92 percent of global refined output, according to the International Energy the flow of rare earths from China to manufacturers around the world has slowed after Beijing in early April began requiring domestic exporters to apply for a licence -- widely seen as a response to US the new requirements -- which industry groups have said are complex and slow-moving -- seven key elements and related magnets require Beijing's approval to be shipped to foreign access to the vital elements became a top priority for US officials in talks with Chinese counterparts."The rare earth issue has clearly... overpowered the other parts of the trade negotiations because of stoppages at plants in the United States," said Paul Triolo, a technology expert at the Asia Society Policy Institute's Center for China Analysis, in an online seminar on disruption, which forced US car giant Ford to temporarily halt production of its Explorer SUV, "really got the attention of the White House", said reportedly rely on Chinese rare earths for producing its defence equipment even as trade and geopolitical tensions F-35 fighter jet contains over 900 pounds (more than 400 kilograms) of rare earth elements, noted a recent analysis by Gracelin Baskaran and Meredith Schwartz of the Critical Minerals Security Program at the Center for Strategic and International is trying to catch up, with its "mine-to-magnet" strategy aiming to ensure an all-domestic supply chain for the key components by 2027. The challenge facing Washington to compete with Beijing in rare earths is compounded by sheer luck: China sits on the world's largest reserves.A1. President of USA is Donald Trump.A2. Used in electric vehicles, hard drives, wind turbines and missiles, rare earth elements are essential to the modern economy and national defence, AFP reported.
