US automaker Ford Motor Company still faces challenges in securing supplies of rare earth magnets, which are critical for vehicle production. Jim Farley, CEO of Ford, said that the supply of these key components has consistently come from China, but with China implementing a new approval process for rare earth exports, the supply continues to slow down. Ford can only confirm daily whether there is sufficient rare earth supply, forcing it to shut down some factories to barely maintain production. In May, due to a supply deficit of rare earths, Ford's Explorer SUV factory in Chicago halted production for a week.
Farley said that while he is pleased with the recent progress in US-China trade negotiations, he has yet to see an improvement in the supply situation for magnets. He also mentioned that Ford has submitted applications to China's Ministry of Commerce, which are currently being reviewed one by one.
