{"id":361,"date":"2025-06-05T12:57:00","date_gmt":"2025-06-05T08:57:00","guid":{"rendered":"https:\/\/www.actutech.app\/chinas-rare-earth-restrictions-halt-first-auto-industry-production-lines\/"},"modified":"2025-06-05T12:57:00","modified_gmt":"2025-06-05T08:57:00","slug":"chinas-rare-earth-restrictions-halt-first-auto-industry-production-lines","status":"publish","type":"post","link":"http:\/\/www.actutech.app\/en\/chinas-rare-earth-restrictions-halt-first-auto-industry-production-lines\/","title":{"rendered":"China\u2019s rare earth restrictions halt first auto industry production lines"},"content":{"rendered":"<figure>\n<p><img decoding=\"async\" alt=\"Mercedes-Benz passenger cars are manufactured at the Rastatt plant. The A-Class and B-Class, the compact SUV GLA, the all-electric EQA and the new CLA are built at the Rastatt plant\" data-caption=\"\" data-portal-copyright=\"Image: Bernd Wei\u00dfbrod \/ picture alliance via Getty Images\" data-has-syndication-rights=\"1\" src=\"https:\/\/platform.theverge.com\/wp-content\/uploads\/sites\/2\/2025\/06\/gettyimages-2217925270.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100\" \/><figcaption><\/figcaption><\/p><\/figure>\n<p class=\"has-text-align-none\">The auto industries in both the US and Europe could come to a standstill within weeks thanks to China\u2019s ongoing restrictions on exports of rare earth minerals and magnets. Several European car part manufacturers have already halted production lines according to the European Association of Automotive Suppliers (CLEPA).<\/p>\n<p class=\"has-text-align-none\">China introduced strict export controls on rare earth minerals and magnets in <a href=\"https:\/\/www.theverge.com\/news\/643215\/china-us-tariffs-34-percent-reciprocal-trump\" target=\"_blank\" rel=\"noopener\">early April<\/a> as part of its tit-for-tat responses to Donald Trump\u2019s new tariffs. While most of those tariffs have <a href=\"https:\/\/www.theverge.com\/news\/664811\/us-china-pause-tariffs-90-days\" target=\"_blank\" rel=\"noopener\">since been temporarily paused<\/a>, the rare earth restrictions remain in place worldwide, which is a problem since China is estimated to control <a href=\"https:\/\/www.theverge.com\/electric-cars\/665198\/rare-earth-magnet-ev-motor-china-tariff\" target=\"_blank\" rel=\"noopener\">more than 90 percent of the rare earth supply chain<\/a>.<\/p>\n<p class=\"has-text-align-none\">Companies that wish to export the materials now require a license, and those have been hard to come by \u2014 <a href=\"https:\/\/asia.nikkei.com\/Spotlight\/Supply-Chain\/China-s-rare-earth-controls-stall-some-European-auto-parts-production\" target=\"_blank\" rel=\"noopener\"><em>Nikkei<\/em> reports<\/a> that only 25 percent of requests have been approved. <a href=\"https:\/\/www.nytimes.com\/2025\/06\/02\/business\/china-rare-earths-united-states-supplies.html?partner=slack&amp;smid=sl-share\" target=\"_blank\" rel=\"noopener\">According to <em>The New York Times<\/em><\/a> that\u2019s had a knock on effect, with some magnet manufacturers in China pausing production while waiting for exports to resume, which could cause more shortages in the future.<\/p>\n<p class=\"has-text-align-none\">It\u2019s a problem for multiple industries, including <a href=\"https:\/\/www.theverge.com\/news\/654095\/musks-robo-revolution-derailed-by-chinas-rare-earth-curb\" target=\"_blank\" rel=\"noopener\">robotics<\/a> and defense, with auto manufacturers at particular risk. Rare earth magnets are essential for hybrid and EV motors, but are also found in everything from catalytic converters to car seats. <em>The Times<\/em> reports that US auto executives are warning that production could be cut back within weeks, while after a <a href=\"https:\/\/www.theverge.com\/news\/675482\/trumps-tariffs-trigger-rare-earth-ripple-effect\" target=\"_blank\" rel=\"noopener\">first warning last week<\/a>, several European part suppliers have already begun to stop work.<\/p>\n<p class=\"has-text-align-none\">\u201cWith a deeply intertwined global supply chain, China\u2019s export restrictions are already shutting down production in Europe\u2019s supplier sector,\u201d said Benjamin Krieger, secretary general of CLEPA, <a href=\"https:\/\/www.clepa.eu\/insights-updates\/press-releases\/urgent-action-needed-as-chinas-export-restrictions-on-rare-earths-disrupt-european-automotive-supply-chains\/\" target=\"_blank\" rel=\"noopener\">in a statement<\/a>. \u201cWe urgently call on both the EU and Chinese authorities to engage in a constructive dialogue to ensure the licensing process is transparent, proportionate, and aligned with international norms.\u201d<\/p>","protected":false},"excerpt":{"rendered":"<p>The auto industries in both the US and Europe could come to a standstill within weeks thanks to China\u2019s ongoing [&hellip;]<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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