Concerned carmakers race to beat China's rare earths deadline

Core Insights - Global automakers are increasingly concerned about potential parts shortages and plant closures due to looming Chinese export controls on rare earths, which are essential for various car components and especially critical for electric vehicles [1][2] - China dominates the rare earths market, controlling approximately 70% of global mining, 85% of refining capacity, and about 90% of metal alloy and magnet production, leading to significant supply chain vulnerabilities for automakers [2][3] Group 1: Supply Chain Concerns - Executives are worried that the new Chinese export control list, which includes elements like ytterbium, holmium, and europium, could exacerbate supply shortages [3] - The journey for rare earths from China to Europe can take up to 45 days, raising concerns about timely supply amidst the impending export controls [6] Group 2: Alternative Sourcing Efforts - Companies are seeking to source rare earths from countries outside of China, but many lack the necessary mining and refining infrastructure to make these resources usable [4] - A critical minerals agreement between the U.S. and Australia aims to bolster rare earth mining projects in Australia as part of efforts to reduce reliance on Chinese supplies [3] Group 3: Recycling and Future Challenges - The recycling of rare earths from old cars is still in its early stages, with companies like Neutral recycling from 400,000 cars annually, but scaling up remains a significant challenge [5] - Recent export restrictions on lithium-ion batteries and materials from China have further heightened concerns over parts supplies for electric vehicles [6]