Automatic groups sound alarm when rare curbs China start bite

The group of the automotive industry is increasingly experiencing a rare land deficit.

Several European factories for car suppliers and production lines have already been closed from recent China Export of control itemsAccording to the European CLEPA car suppliers, the group warned more mutitations when reserves are exhausted.

The automotive industry and automotive executives were also alarming, saying that the highly globalized sector is acutely vulnerable for further supply chain violation.

The Chinese Ministry of Commerce in early April imposed export restrictions on several rare elements and magnets that are widely used in the automotive, protected and energy sector. Serbs came as part of a response to the tariff for the tariff for US President Donald Trump on Beijing’s products.

Some of the affected elements of rare land are vital components for the production of both combustion engines and electric cars.

Split – Note On Wednesday, while hundreds of applications for export licenses were submitted to the Chinese authorities since early April, only about 25% were approved.

“With a deeply intertwined global supply network, export restriction in China is already stopping production in Europe suppliers,” Clepa Secretary General Benjamin Kryger said in a statement.

For its part, the German Automobile Industry Association (VDA), the main lobby of the country’s automotive industry, warned that the restrictions on Beijing’s export could soon be discharged.

“Chinese export restrictions on rare lands are a serious problem for safety supplies, not just on car networks. Although some licenses have now been provided, this is not currently enough to ensure smooth production,” said VDA President Hildgard Mueller.

“The further problem arises from the slow customs clearance of exports, for which a real export license was provided. If the situation does not change fast, production delays and even stop production can no longer be excluded,” she added.

Mueller confirmed VDA’s call to German and the European Union, “to urge the Chinese side to make the decision to be found quickly.”

Expected demand for rare land and critical minerals grow exponentially In the coming years like The transition of pure energy is gaining pace.

China, meanwhile, is The undisputed leader From the supply chain of critical minerals, accounting Approximately 60% of world -wide minerals and materials of rare land. American officials before prevent What it creates a strategic problem against the background of turning to more sustainable energy sources.

Germany Bmw As reported Volkswagen and Group Mercedes-Benz Both said they didn’t feel any disadvantages.

“As the Mercedes-Benz principle has a strategy for all critical raw materials, which is acquired directly and indirectly, which provides demand in the long run and mitigates the risk in the long run-in some regions of raw materials in some regions, Mercedes-Benz said in a statement.

The car added that it is also working on concepts to “significantly reduce” the number of rare metals per unit unit. “In the future, Mercedes-Benz wants to use new material compositions to abandon heavy metals of rare land such as dysproys in our electrical discs,” they said.

Volkswagen’s press secretary told CNBC that the supply of auto parts containing rare land was stable.

“Our suppliers are constantly working with their subcontractors to get the necessary export licenses. We have received signs that a limited number of these licenses were provided,” they said.

BMW press -secretary did not respond to a comment request.

It is not only European cars that are considered rare land.

Japan Nissan He said it also studies ways to minimize China’s export control, working with the Japanese government and the Japanese car manufacturers.

“This is what happens when we say – and it’s true that it will have a certain impact on the automotive industry,” said Nissan CEO Ivan Espinos on Wednesday CNBC.

“We need to continue searching for alternatives in the future, maintaining flexibility and keeping our options open,” he added.

Japanese automaker Suzuki Motor In the suspended production of its quick car from -wit China’s rare curbs, Reuters report Thursday with reference to two unnamed sources. The SUZUKI MOTOR press -secretary was not immediately available for comment on CNBC.