China’s Rare Earth Magnet Export Controls Threaten Global Auto Industry Shutdowns

Reuters reports that a few Chinese officials hold sway over the global auto supply chain. They tightly control rare earth magnet export permits.

Since April, China restricted exports of rare earth magnets and seven key minerals. Permit approvals take over 60 days and are limited. Only Volkswagen’s European suppliers got some licenses.

Global automakers face production halts. Tesla and Indian firms struggle with magnet shortages. Europe and Japan hold urgent talks to cope.

Despite a May trade truce with the U.S., China keeps tight controls. Firms seek alternative supply chains, but short-term fixes are tough. Global logistics uncertainty grows.