Stopping plants is at risk – China’s delays are not yet ready for alternatives.
The world’s car manufacturers are on the edge of a new crisis. Due to exporting restrictions from China, there has been a lack of rare -earth magnets -critical components for the manufacture of electric vehicles and modern cars, Reuters reports. According to Frank Ekard, the general director of the Magnosphere of the German company, the industry is “in full panic”, and automakers are ready to pay any price to get a spare magnet.
Some of the European factories have been suspended that the job, and stopping other businesses is expected in the near future, the organization of EU Clepa’s auto producers warns. “Sooner or later it will affect everything,” General Benjamin Crieger told him.
The reason is China’s difficult control over exporting rare -earth metals, in particular magnets, without the electric motor, rear mirrors, speakers, sensors, oil bombs and other essential components of modern cars do not work. According to Alixpartners, China controls up to 90% of the manufacture of rare -earth magnets, 85% of processing and 70% of the manufacture of raw materials in the world.
Giants such as GM, BMW, ZF and Borgwarner work on the solution to the problem -they are trying to create de -electric motor with minimal or zero content of rare -earth metals. At the same time, the EU has enacted a law on critical raw materials to activate production in Europe, but the implementation of the initiatives is slow.
So far, alternatives have not been scalid, automakers are forced to quickly create magnet reserves, and in some cases to produce cars without individual ingredients and wait until it becomes reached, as during the crisis in microchips.
China has used this “Trump Card” earlier. In 2010, Beijing limited the export of rare elements of land to Japan during a trading dispute. And although Tokyo subsequently reduced the hope of Chinese delivery, other countries do not have time to repeat this example.
Analyst warnings: Hope in China applies not only to rare -earth metals. According to the European Commission, Beijing controls more than 50% of supplies in the world of another 19 major materials, including graphite, manganese and aluminum.
We remind you, earlier it was reported that Chinese car sellers were asking manufacturers to reduce supply.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.