Exclusive-Car makers warn China’s rare-earth curbs could halt production

Written by David Sheparson and Michael Martina

WASHINGTON (Reuters)-CEOs in the Global Anti-Way on an imminent deficiency in the rare land magnets of China-used in everything starting from the windshield engines to anti-closure braking sensors-that can force the closure of auto factories within weeks.

In a letter on May 9, previously not reported to Trump Administration officials, the head of the commercial group representing General Motors, Toyota, Volkswagen, Hyundai and other car manufacturers have raised urgent concerns.

“Without reliable access to these elements and magnets, car suppliers will not be able to produce critical car components, including automatic transport operations, suffocating bodies, generators, various engines, sensors, seats belts, speakers, engines, engines, power guidance, cameras,“ alliance for automatic innovation, the Trump administration wrote.

The message, which was also signed by Mema, the Vehicle suppliers association, added that without these basic car components, it will be a matter of time before the disruption of American vehicle factories.

“In severe cases, this may include the need for low production sizes or even the closure of vehicle assembly lines,” the groups said.

The CEO of ALLIANCE JOHN Bozzella and Mema Bill CEO told Reuters on Friday that the situation had not been solved and remained concerned. They expressed their gratitude for the Trump administration’s high -level participation to prevent the disruption of American cars and the supply chain.

Bozzella pointed out that the cars were on the agenda during the Treasury Secretary Scott’s talks and the talks of the American commercial actor Jamieson Greer with their Chinese counterparts in Geneva earlier this month.

Jarir told CNBC on Friday that China agreed to lift restrictions on rare Earth magnet exports to American companies and was not moving quickly enough to grant access to major American industries. “We haven’t seen some of these critical minerals flow as they were supposed to do.”

China – which controls more than 90 % of the global processing capacity of the magnet used in everything from cars and combat aircraft to home appliances – imposed restrictions in early April that require exporters to obtain licenses from Beijing.

Rare magnet exports from China launched in April, as companies wrestle with the unusual application process to obtain permits that sometimes require hundreds of pages of documents.

In a social media post on Friday, president Donald Trump accused China of violating the terms of agreement reached this month to temporarily request customs tariffs and other commercial restrictions.