Ford has temporarily shut down one of its plants due to a shortage of rare earth minerals, according to CEO Jim Farley. The US automaker says the lack of these critical minerals is hurting production and causing delays. Rare earth minerals are used in various components such as windshield wipers, seat belts, and speakers.
The majority of US rare earth minerals come from China, which has imposed stricter controls on exports amid a trade war with the US. This move has made it difficult for US automakers to secure licenses to export these materials.
However, US and Chinese negotiators recently reached an agreement under which Beijing would resume regular exports of rare earths to the US. CEO Farley expressed optimism about this development, saying he hopes the supply constraints will ease soon.
Ford is now awaiting approval of applications with China’s Ministry of Commerce to export more rare earths. The company has managed to navigate the complex process so far, but Farley warned that it could become a larger issue for the automaker in the future.
Source: https://www.cbsnews.com/news/ford-ceo-china-rare-earth-shortage-car-production