China's Rare Earth Export Controls Threaten Supply Chains of European Carmakers
Rare earth metals play an indispensable role in modern automobiles. From the permanent magnets inside electric motors, to the sensor modules essential for ADAS (Advanced Driver Assistance Systems), and even to the charging and energy management systems, rare earths are critical materials. However, since April this year, China, the dominant supplier of rare earths, has imposed export restrictions on several rare earth metals and related magnets. This move has quickly caused upheaval across global industries. Amid the rapid growth of electric vehicles, the tightening of rare earth supplies not only delays production schedules but also drives up overall costs, putting pressure on both pricing and delivery timelines.