Global alarms rise as China's critical mineral export ban takes hold

[formosan]

This is a very serious situation.

Alarm over China's stranglehold on critical minerals grew on Tuesday as global automakers joined their U.S. counterparts to complain that restrictions by China on exports of rare earth alloys, mixtures and magnets could cause production delays and outages without a quick solution.

German automakers became the latest to warn that China's export restrictions threaten to shut down production and rattle their local economies, following a similar complaint from an Indian EV maker last week.

China's decision in April to suspend exports of a wide range of critical minerals and magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.

Shipments of the magnets, essential for assembling everything from cars and drones to robots and missiles, have been halted at many Chinese ports while the Chinese government drafts a new regulatory system. Once in place, the new system could permanently prevent supplies from reaching certain companies, including American military contractors.

The suspension has triggered anxiety in corporate boardrooms and nations' capitals - from Tokyo to Washington - as officials scrambled to identify limited alternative options amid fears that production of new automobiles and other items could grind to a halt by summer's end.

"If the situation is not changed quickly, production delaysand even production outages can no longer be ruled out," Hildegard Mueller, head of Germany's auto lobby, told Reuters on Tuesday.

Frank Fannon, a minerals industry consultant and former U.S. assistant secretary of state for energy resources during Trump's first term, said the global disruptions are not shocking to those paying attention.

"I don't think anyone should be surprised how this is playing out. We have a production challenge (in the U.S.) and we need to leverage our whole of government approach to secure resources and ramp up domestic capability as soon as possible. The time horizon to do this was yesterday," Fannon.


Diplomats, automakers and other executives from India, Japan and Europe were urgently seeking meetings with Beijing officials to push for faster approval of rare earth magnet exports, sources told Reuters, as shortages threatened to halt global supply chains.

A business delegation from Japan will visit Beijing in early June to meet the Ministry of Commerce over the curbs and European diplomats from countries with big auto industries have also sought "emergency" meetings with Chinese officials in recent weeks, Reuters reported.

India, where Bajaj Auto warned that any further delays in securing the supply of rare earth magnets from China could "seriously impact" electric vehicle production, is organizing a trip for auto executives in the next two to three weeks.

In May, the head of the trade group representing General Motors, Toyota, Volkswagen, Hyundai and other major automakers raised similar concerns in a letter to the Trump administration.

"Without reliable access to these elements and magnets,automotive suppliers will be unable to produce criticalautomotive components, including automatic transmissions,throttle bodies, alternators, various motors, sensors, seatbelts, speakers, lights, motors, power steering, and cameras,"the Alliance for Automotive Innovation wrote in the letter.
https://www.msn.com/en-ca/money/topstories/global-alarms-rise-as-china-s-critical-mineral-export-ban-takes-hold/ar-AA1G1p3b?ocid=hpmsn&cvid=73ac612ad6864f68ab39ed95e34162f6&ei=32

[Brent]

This is a very serious situation.

Alarm over China's stranglehold on critical minerals grew on Tuesday as global automakers joined their U.S. counterparts to complain that restrictions by China on exports of rare earth alloys, mixtures and magnets could cause production delays and outages without a quick solution.

German automakers became the latest to warn that China's export restrictions threaten to shut down production and rattle their local economies, following a similar complaint from an Indian EV maker last week.

China's decision in April to suspend exports of a wide range of critical minerals and magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.

Shipments of the magnets, essential for assembling everything from cars and drones to robots and missiles, have been halted at many Chinese ports while the Chinese government drafts a new regulatory system. Once in place, the new system could permanently prevent supplies from reaching certain companies, including American military contractors.

The suspension has triggered anxiety in corporate boardrooms and nations' capitals - from Tokyo to Washington - as officials scrambled to identify limited alternative options amid fears that production of new automobiles and other items could grind to a halt by summer's end.

"If the situation is not changed quickly, production delaysand even production outages can no longer be ruled out," Hildegard Mueller, head of Germany's auto lobby, told Reuters on Tuesday.

Frank Fannon, a minerals industry consultant and former U.S. assistant secretary of state for energy resources during Trump's first term, said the global disruptions are not shocking to those paying attention.

"I don't think anyone should be surprised how this is playing out. We have a production challenge (in the U.S.) and we need to leverage our whole of government approach to secure resources and ramp up domestic capability as soon as possible. The time horizon to do this was yesterday," Fannon.


Diplomats, automakers and other executives from India, Japan and Europe were urgently seeking meetings with Beijing officials to push for faster approval of rare earth magnet exports, sources told Reuters, as shortages threatened to halt global supply chains.

A business delegation from Japan will visit Beijing in early June to meet the Ministry of Commerce over the curbs and European diplomats from countries with big auto industries have also sought "emergency" meetings with Chinese officials in recent weeks, Reuters reported.

India, where Bajaj Auto warned that any further delays in securing the supply of rare earth magnets from China could "seriously impact" electric vehicle production, is organizing a trip for auto executives in the next two to three weeks.

In May, the head of the trade group representing General Motors, Toyota, Volkswagen, Hyundai and other major automakers raised similar concerns in a letter to the Trump administration.

"Without reliable access to these elements and magnets,automotive suppliers will be unable to produce criticalautomotive components, including automatic transmissions,throttle bodies, alternators, various motors, sensors, seatbelts, speakers, lights, motors, power steering, and cameras,"the Alliance for Automotive Innovation wrote in the letter.
https://www.msn.com/en-ca/money/topstories/global-alarms-rise-as-china-s-critical-mineral-export-ban-takes-hold/ar-AA1G1p3b?ocid=hpmsn&cvid=73ac612ad6864f68ab39ed95e34162f6&ei=32

Shame on us for letting China control rare earth mineral supplies.

[Thiel]

Shame on us for letting China control rare earth mineral supplies.

It is our own fault. Rare earths produce a lot of pollution. But, we need them. It's dangerous and just plain stupid relying on a hostile foreign government.

[Shen Li]

It is our own fault. Rare earths produce a lot of pollution. But, we need them. It's dangerous and just plain stupid relying on a hostile foreign government.

China is a competitor of the West. That's it.

[Brent]

China is a competitor of the West. That's it.

They do not compete fairly.

[Lokmar]

China is a competitor of the West. That's it.

FUK CHINA! CHINA IS ASSHOLE!

[Lokmar]

They do not compete fairly.

Fukin chanks are liars too! They make an agreement and promptly break it. If I were POTUS, I'd embargo ALL china goods. I support Thermonuclear War against china and winnie the xi!!!! FUK CHINA IN ITS SHITTY CHANK ASSHOLE!

[Thiel]

Fukin chanks are liars too! They make an agreement and promptly break it. If I were POTUS, I'd embargo ALL china goods. I support Thermonuclear War against china and winnie the xi!!!! FUK CHINA IN ITS SHITTY CHANK ASSHOLE!

It is not a country with the rule of law. We open up our country to tariff free trade and they will not allow Western products into their country unless it's assembled in China.

Then there is the billions in industrial theft, the spying, the ev scam and hoarding rare earth metals.

I applaud the new American administration for attempting to rectify the wrongs of previous administrations.

[Shen Li]

FUK CHINA! CHINA IS ASSHOLE!

Praise the Motherland.

[Lokmar]

Praise the Motherland.

NO! Didnt you listen? CHINA IS ASSHOE!!!!!!!!! FACT!

Besides, Taiwan is BEST China!!!!

[.]

Shame on us for letting China control rare earth mineral supplies.

They don't though. Rare earth minerals are actually fairly well distributed across the globe, they're difficult and messy to extract is all. Pretty much any and all of the rare earths sought after (at least for our purposes) can be sourced completely independently of China... if indeed we were serious about getting them.

The real truth is that China produces theirs quite cheaply and largely because they don't "shitting where they eat" so to speak. The only thing I can see as a stumbling block for us doing it for ourselves is public sentiment; no NIMBYist is ever going to welcome the pollutant byproducts and will prefer that China continue fouling its own backyard instead.

[DKG]

They don't though. Rare earth minerals are actually fairly well distributed across the globe, they're difficult and messy to extract is all. Pretty much any and all of the rare earths sought after (at least for our purposes) can be sourced completely independently of China... if indeed we were serious about getting them.

The real truth is that China produces theirs quite cheaply and largely because they don't "shitting where they eat" so to speak. The only thing I can see as a stumbling block for us doing it for ourselves is public sentiment; no NIMBYist is ever going to welcome the pollutant byproducts and will prefer that China continue fouling its own backyard instead.

We have a lot of critical minerals right here in the province of Ontario. It is called the Ring of Fire. Of course Trudeau blocked attempts to develop it.

Doug Ford foolishly endorsed Carney in the election with the tacit understanding Carney would expedite federal approvals. That is another election promise the prime minister was lying about.

[.]

We have a lot of critical minerals right here in the province of Ontario. It is called the Ring of Fire. Of course Trudeau blocked attempts to develop it.

Well that's a no-brainer, given how heavily he invested in Chinese businesses.

You see my point though; the only reason China is seen as a ready source for these rare earths is because they are prepared to exploit their deposits while the rest of the world is reluctant to exploit their own. Canada could invest in some capital works today and in six months be seeing returns on that investment. As could the US.

Trump famously was laughed at by a bunch of krauts once when he told them of the folly of being reliant reliant on Russian gas... now look at the shit they find themselves in. Look in the mirror and tell me the same does not apply to the west's reliance on ching-chong rare earths.

And speaking of Rare Earth... I present one of Detroit Michigan's better exports.

Fat Oak, is that you?

[DKG]

You see my point though; the only reason China is seen as a ready source for these rare earths is because they are prepared to exploit their deposits while the rest of the world is reluctant to exploit their own. Canada could invest in some capital works today and in six months be seeing returns on that investment. As could the US.

Precisely. China is behind the keeping our rare earth minerals in the ground much like OPEC and Russia are behind keeping Canada's energy riches in the ground.