NewsFlash / Rare Earth / US Auto Suppliers Warn of Production Disruptions Due to Rare Earth Export Controls
US Auto Suppliers Warn of Production Disruptions Due to Rare Earth Export Controls
iconJun 3, 2025 18:29
The US Automotive Suppliers Association has warned that US automotive components may be negatively impacted by disruptions in the supply of rare earths and magnets. According to an open letter, assembly disruptions may occur by the end of May, leading to reduced production and even the shutdown of automotive assembly lines. Starting in early April this year, China has imposed controls on the export of rare earth materials and magnets. Despite a 32% increase in US rare earth imports from January to April, this was not enough to offset the impact of the export restrictions. The letter pointed out that if these rare earth materials and magnets are unavailable, automotive suppliers will be unable to produce key components, affecting items such as transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras. Currently, there are tensions in trade relations between the US and China. There is a trend towards stricter domestic export approvals.
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