News #113 - Global supply chains threatened by lack bongdaso dữ liệu Chinese rare earths

Delays in licensing approvals under China’s new export control regime are raising concerns about disruptions to global supply chains, particularly for critical materials essential for products such as electric vehicles (EVs), wind turbines, humanoid robots, and fighter jets.

In early April, Beijing imposed export restrictions on seven rare earth elements and permanent magnets, intensifying pressure on industries reliant on these resources. While the Chinese government has approved limited export licenses to Europe, industry experts caution that the current pace bongdaso dữ liệu approvals is insufficient to meet demand, potentially jeopardizing production timelines.

Industry Voices Growing Concerns

Wolfgang Niedermark, executive board member bongdaso dữ liệu the Federation bongdaso dữ liệu German Industries (BDI), warned, "The window to avoid significant damage to production in Europe is rapidly closing."

Major U.S. manufacturers, including Tesla, Ford, and Lockheed Martin, have also expressed concerns over the potential impact bongdaso dữ liệu these controls during recent investor briefings.

A European industry executive based in China described the delays as “untenable” for foreign manufacturers, noting, “The process demonstrates a lack bongdaso dữ liệu preparation and underestimation bongdaso dữ liệu the operational impact at the working level.”

Geopolitical Tensions and Strategic Leverage

China’s expansion bongdaso dữ liệu rare earth export controls follows the announcement bongdaso dữ liệu sweeping U.S. tariffs by President Donald Trump on April 2. The controls require exporters to secure licenses from China’s Ministry bongdaso dữ liệu Commerce for shipments bongdaso dữ liệu the restricted rare earth elements and the permanent magnets derived from them, underscoring China’s dominance in global mineral supply chains.

It remains unclear whether China has begun approving exports to the U.S. following the recent U.S.-China tariff ceasefire agreement.

Limited Approvals and Bureaucratic Challenges

Some Chinese exporters have reported receiving licenses. Yantai Zhenghai Magnetic Material in Shandong Province confirmed it had resumed fulfilling orders for select customers. Similarly, sources indicated that at least one shipment destined for Volkswagen’s German operations was approved.

Volkswagen stated that its suppliers had received a "limited number bongdaso dữ liệu export licenses" and that its supply bongdaso dữ liệu rare earth-containing components remained stable.

However, industry participants worry about the capacity bongdaso dữ liệu China’s licensing bureaucracy to handle the surge in applications. European companies have voiced uncertainty about demonstrating compliance with conditions that prohibit re-export to the U.S.

Elon Musk, Tesla’s CEO, revealed that China sought assurances that rare earth magnets used in Tesla’s robotic arms would not be diverted for military purposes. He expressed confidence in resolving these challenges but acknowledged the complexities.

Military Concerns and Long-term Implications

China’s focus on preventing military-related applications is evident in its stringent licensing conditions. A manager at Chengdu Galaxy Magnets confirmed that while non-military exports might still be allowed, military-related applications were strictly prohibited.

The new controls are already causing short-term supply chain disruptions and are expected to drive long-term adjustments. Lockheed Martin CFO Evan Scott assured investors that the company had sufficient material for the year and anticipated priority support from U.S. authorities given its defense programs’ importance.

Outlook and Strategic Shifts

Despite the challenges, Cameron Johnson, a Shanghai-based supply chain expert at Tidalwave Solutions, observed that some longstanding partners bongdaso dữ liệu China might still access rare earth materials before their licenses are officially processed. "There is still material going out," he noted.

Cory Combs, associate director at Trivium China, highlighted that while China has not “bluntly cut everyone off,” uncertainty persists. He remarked, “China’s strategic leverage partly depends on its ability to modulate export controls in response to U.S. actions.”

Experts believe these developments will accelerate Western efforts to diversify and reduce reliance on Chinese rare earths.

Source: https://www.ft.com/content/81ba803e-9cce-4752-8432-4dde4e77c691

𝐀𝐋𝐒 – 𝐓𝐡𝐞 𝐋𝐞𝐚𝐝𝐢𝐧𝐠 𝐨𝐟 𝐀𝐯𝐢𝐚𝐭𝐢𝐨𝐧 𝐋𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬

Share this article