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AutoGear

Scarcity of rare earths leaves automotive production in Europe in difficulty.

Virgilio Machado by Virgilio Machado
June 4, 2025
in Latest News
Reading Time: 2 mins read
0
BMW arranca com a produção da nova geração do X2

A “trade” war between the US and China has led the Beijing government to impose restrictions on the sale of vital magnetic minerals to other countries, which is putting the automotive production in Europe in a difficult situation.

According to ” Reuters” this Wednesday, some European automotive parts factories have suspended production, which has already led BMW to warn that its supply chain has been affected by the shortage of rare earths, as concerns grow over China’s restrictions on exports of essential minerals.

The European Association of Automotive Suppliers (CLEPA) has already announced that several production lines have been suspended due to the shortage of rare earths, recently warning about the increasing threat to production posed by the Chinese restriction.

The measure imposed by the Beijing government demonstrates China’s dominance in the mineral industry, producing about 90% of the world’s rare earths, essential for the transition to green energy, and is seen as a show of strength by the Beijing government in the “trade” war with US President Donald Trump.

Despite the agreement reached between Beijing and Washington in May, China’s slow pace in easing its exports of essential minerals has been criticized by Donald Trump towards Beijing, which, according to the US President, violated the truce reached to reverse tariffs and trade restrictions.

Tags: Associação Europeia de Fornecedores de AutomóveisBMWChinaDonald TrumpEUAEuropaMinerais magnéticosPequimProdução AutomóvelTerras raras
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