China's rare earth restrictions halt first auto industry production lines

China's recent export controls on rare earth minerals and magnets, implemented as a reaction to trade tensions, could halt production in the US and European auto industries. With China controlling over 90% of the rare earth supply chain, manufacturers face significant challenges in obtaining necessary licenses—less than 25% of license requests are approved. This has already led to production halts among European car part suppliers while US auto executives warn of impending production cuts. Urgent calls for dialogue between EU and Chinese authorities highlight the depth of this supply chain crisis.

With a deeply intertwined global supply chain, China's export restrictions are already shutting down production in Europe's supplier sector, leading to potential auto industry standstill.

Companies that wish to export the materials now require a license, and those have been hard to come by - only 25 percent of requests have been approved.

Read at The Verge