Global car manufacturers are rushing to secure essential raw materials before China’s export restrictions on rare earth metals take effect. These metals are widely used in car engines, braking systems, sensors, and electrical components. Experts say the restrictions could lead to a shortage of spare parts and production halts.
China currently controls 70% of the world’s rare earth mining and 85% of refining. As a result, the new export controls are putting significant pressure on the global automotive industry. The United States and Australia are launching joint mining projects to reduce this dependency, but almost all heavy metals are still processed in China.
Automakers, including Toyota, Hyundai, and Bosch, are trying to stockpile materials before the restrictions come into force. Some companies, such as BMW, have launched projects to develop motors without rare earth elements. However, it will take several more years before these technologies can be mass-produced.
According to analysts, China’s pricing policy makes competition difficult for other countries. Experts believe Beijing may further tighten export controls in the coming years. Therefore, the automotive industry will remain dependent on China’s rare earth supply for a long time.
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