The automotive industry appears to have come to the realization that China controls nearly every meaningful supply chain that pertains to building cars. Last week, automotive executives were specifically expressing concerns about a potential shortage of rare-earth magnets forcing production stoppages and factory closures. While that sounds like it’ll primarily be a problem for the drive motors all-electric vehicles, the issue is supposed to be all encompassing.
China, which controls almost all of the world’s ability to process the magnets for manufacturing purposes, imposed new restrictions on how they are to be exported in April. Special export licenses must now be obtained in order for any rare-earth minerals or magnets to leave the country — which China now views as a national security issue.
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