China, the world’s largest producer of rare earths, has been increasing its control over the essential metal used in various industries, including automotive manufacturing. This move has sparked fears that it could lead to auto shortages and potential shutdowns.
Rare earths are a group of 17 metallic elements used in electric motors, magnets, and other critical components in vehicles. China’s dominance in rare earth production has made its suppliers crucial for the global automotive industry. However, Beijing’s increasing control over the market is causing concern among manufacturers and consumers alike.
With China’s grip on the supply chain tightening, some analysts predict that auto makers may face significant challenges in securing sufficient rare earths for their products. This could result in shortages, delays, or even forced shutdowns, which would have a ripple effect on the entire automotive ecosystem.
The situation has already led to increased prices for rare earths, making it more expensive for manufacturers to produce vehicles. While some countries like Japan and Australia are trying to diversify their rare earth supplies, China’s control over the market remains a significant concern.
As the world’s largest producer of rare earths, China’s actions have far-reaching implications for the global auto industry. With its increasing control over the supply chain, it is essential to monitor the situation closely and assess the potential impact on the automotive sector.
Source: https://www.ft.com/content/b8269eff-b60a-435f-8e85-43f9fa36f9c2