Two decades ago, factories in Indiana that turned rare earth metals into magnets moved production to China — just as demand for the magnets was starting to soar for everything from cars and semiconductors to fighter jets and robots.
The United States is now reckoning with the cost of losing that supply chain. The Chinese government abruptly halted exports of rare earth magnets to any country on April 4 as part of its trade war with the United States.
Now, American and European companies are running out of the magnets.
Reuters: Carmakers warn China’s rare-earth curbs could halt production
“Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras,” the Alliance for Automotive Innovation wrote the Trump administration.
“In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines,” the groups said.
