Car groups seem to be the alarm where the rare Earth programs in China begin in the bite

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Workers who transmit soil that contains rare Earth elements for export in a port in Lianyungang, Jiangsu Province, China, October 31, 2010.

Strenger Reuters

Car industry groups are increasingly anxious about the rare land shortage.

Several suppliers of European cars and production lines have already been closed due to the last China Export controlsAccording to the Association of suppliers in Europe Clepa, with the group warning of more interruption with the depletion of stocks.

The automotive industry in Germany and the CEO of cars also looked this alarm, saying that the globalized globalization sector is completely vulnerable to the disruption of the supply chain.

In early April, the Chinese Ministry of Commerce imposed export restrictions on many rare and magnets used on a large scale in the automotive, defense and energy sectors. The restrictions came as part of the response to the increase in US President Donald Trump’s tariff for Beijing products.

Some of the rare affected ground elements are vital ingredients for the production of both combustion engines and electric cars.

Chlip He said On Wednesday, although hundreds of export license requests have been submitted to the Chinese authorities since early April, only about 25 % have been approved.

“With the deeply intertwined global supply chain, export restrictions in China have already closed production in the suppliers sector in Europe,” said the Secretary -General of Clubin Benjamin Crager in a statement.

For its part, the German Automobile Industry Association (VDA), the country’s main auto industry hall, warned that Beijing’s export restrictions may cause production to stop soon.

“Chinese export restrictions on the rare ground are a serious challenge to the security of the show, and not only in car supply chains. Although some licenses have been granted now, this is not currently enough to ensure smooth production.”

She added, “Another problem of slow customs clearance arises for export, which has been granted a valid export license. If the situation does not change quickly, the delay of production will not be excluded and until the production stops.”

Muller reiterated VDA’s invitation to the German and European Union legislators “to bridge this issue categorically with the Chinese side so that a solution to the situation can be found quickly.”

Vehicles are assembled on a line at the BMW factory in Leipzig.

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It is expected that the demand for rare land and critical minerals will be required Grow In the coming years like Clean energy transmission captures a pace.

China, Meanwhile, is Undisputed From the critical metal supply chain, accounting For about 60 % of the world’s mineral production and rare ground materials. Former US officials to caution This represents a strategic challenge amid the axis of the most sustainable energy sources.

“We need to continue to find alternatives.”

Germany BMW According to what is said on Wednesday, some of its own suppliers have been affected by export restrictions in China, while their major local peers Volkswagen and Mercedes Benz collection Both said that they do not suffer from any deficiency.

“As an initial issue, Mercedes-Benz has a strategy for all critical raw materials that are purchased directly and indirectly that guarantees the demand for long-term and reduces the risk of long-term supply-with the knowledge that deposits of raw materials are limited in some areas,” speakers of the Mercedes-Benz Group said in the email statement.

The car maker added that he was also working on concepts to “reduce” the amount of rare ground minerals for each unit. They said: “In the future, Mercedes -Benz wants to use new materials to dispense with rare heavy ground minerals such as Dysprosium in our electrical engines.”

A Volkswagen spokesman told CNBC that the supply of automatic parts containing rare land were stable.

They said: “Mardona is constantly working with the sub -contractors to obtain the necessary export licenses. We have received indications that a limited number of these licenses have been granted.”

BMW spokesman did not respond to the comment.

Evan Espinoza, CEO of Nissan Motor, speaks during an interview at the company’s headquarters in Yokohama, Japan, on Thursday, May 15, 2025.

Bloomberg Bloomberg Gety pictures

Not only European auto makers count a rare shortage on the ground.

Japan April She also explored ways to reduce the impact of export controls in China by working with the Japanese government and the Association of Automobile Manufacturers in Japan.

“It is something that is happening and we are talking – and it is true that it will have some impact on the auto industry,” Evan Espinoza, CEO of Nissan, told CNBC on Wednesday.

“We need to continue to find alternatives for the future, maintain flexibility and maintain our options open,” he added.

Japanese auto industry company Suzuki Motor Horrent production of its rapid car due to the rare land restrictions in China, Reuters I mentioned Thursday, quoting two unpopular sources. SUZUKI MOTOR spokesperson was not immediately available to comment when contacted by CNBC.



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