On June 6, Japan's Suzuki Motor Corporation announced that some of its automobile production lines in Japan had temporarily stopped operating due to the failure of rare earth material parts from China to arrive on time. The company's statement pointed out that the shortage of parts is mainly used in automotive electronic systems and engine components, which directly affects production plans.

Many automakers and parts companies are affected

Suzuki is not the only automaker affected by the rare earth supply. In May, the Automotive Innovation Alliance and the Automotive Parts Manufacturers Association (MEMA), which represent mainstream automakers such as GM, Toyota, Volkswagen, and Hyundai, sent a joint letter to the Trump administration, warning that without stable access to rare earth elements and magnets, auto suppliers will not be able to produce key auto parts including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lighting equipment, power steering systems, and cameras. In severe cases, they may be forced to reduce production or even shut down vehicle assembly lines, mentioning the risk of shutdowns at U.S. auto plants. Ford Motor Company previously said that due to a shortage of rare earths, the company's Chicago plant suspended production of Explorer SUVs for a week in May. It is said that the main reason is that the shortage of rare earth magnets has affected the supply of motors. In early June, BMW said that although its factories are still operating normally, some of its supplier networks have been affected by the shortage of rare earths. Auto parts giant Bosch said that the rare earth supply bottleneck is affecting its suppliers, and suppliers must now provide a lot of detailed information to obtain export licenses. Another auto parts giant, ZF, said that although it does not directly purchase raw materials, the shortage of rare earths is affecting the delivery of some of its suppliers.

The European Association of Automotive Suppliers (CLEPA) revealed that due to the shortage of rare earths, many European auto suppliers' factories and production lines have been forced to close. Tesla's humanoid robot "Optimus Prime" also faces difficulties in mass production due to its tight rare earth inventory.

Rare earths are essential to the automotive industry chain

"Rare earth" is not "rare soil" in the literal sense, but a general term for 17 metal elements in the periodic table. Rare earth is widely used in automotive electronic components, optoelectronic materials, battery materials, permanent magnet materials, automotive lightweight, and even glass ceramics.

In traditional power vehicles, rare earth materials such as cerium oxide, cerium-based catalysts, and lanthanum-based catalysts are used in large quantities in fuel injection systems and post-treatment three-way catalytic devices; new energy vehicle motors use a large number of materials such as neodymium iron boron and samarium cobalt, and the electronic control system uses dysprosium oxide materials. In power batteries, materials such as lanthanum (La) and cerium (Ce) are used to improve and increase the energy density of lithium-ion batteries; in sensors related to assisted driving, terbium-based materials are also widely used; in the field of lightweight, alloys of elements such as neodymium and yttrium are used to improve material strength and reduce weight.

According to data from the industry association, each pure electric vehicle of new energy vehicles consumes 5-10kg of neodymium iron boron, and each plug-in hybrid vehicle consumes 2-3kg.

my country occupies an important position in the entire industrial chain of rare earth mining, refining, processing and application. Rare earth resources are widely distributed but unevenly distributed around the world. my country is the country with the richest rare earth resources in the world, with rare earth reserves of about 44 million tons (rare earth oxides), accounting for 40% of the world's total reserves. my country is the world's largest producer of rare earths. In 2023, my country's rare earth production reached 210,000 tons, accounting for nearly 70% of the world; smelting and separation capacity accounted for 92.3% of the world, and technology is leading the world.

In 2011, the State Council issued the "Several Opinions on Promoting the Sustainable and Healthy Development of the Rare Earth Industry", clarifying the strategic position of rare earth resources. In 2024, the Ministry of Industry and Information Technology drafted the "Management Measures for the Total Control of Rare Earth Mining and Rare Earth Smelting and Separation", which included imported rare earth mineral products in quota management and further concentrated the supply structure. At the same time, the export of 18 key technologies was restricted through the "Catalogue of Prohibited and Restricted Export Technologies". In February 2025, the Ministry of Industry and Information Technology publicly solicited opinions on the "Measures for the Total Control and Management of Rare Earth Mining and Rare Earth Smelting and Separation (Interim) (Draft for Public Comments)" and other documents to clarify the total control and management of rare earth mining and smelting and separation.

Reasonable and effective control to maintain the stability of the industrial chain

On April 4, the Ministry of Commerce and the General Administration of Customs jointly issued an announcement to implement export controls on some medium and heavy rare earth related items. Recently, relevant departments in my country have made intensive statements on rare earth exports.

On May 28, according to China Daily, the Ministry of Commerce recently held a symposium for upstream and downstream semiconductor companies in China and Europe to explain the rare earth export control policy and strengthen communication with Chinese and European chip companies on rare earth export control to maintain the stability of the global industrial chain.

On June 5, when answering questions from Japanese NHK reporters about Suzuki Motors suspending production of its main small cars in Japan due to China's rare earth export control, Foreign Ministry spokesman Lin Jian said that the export control measures introduced by China are in line with international practices, are non-discriminatory, and are not targeted at specific countries. Regarding the specific issues you mentioned, it is recommended to ask the competent authorities of China.

On June 7, when answering reporters' questions about medium and heavy rare earth export control measures, the spokesperson of the Ministry of Commerce said that rare earth related items have dual-use attributes, and the implementation of export controls on them is in line with international practices. China implements export controls on rare earth-related items in accordance with the law, with the aim of better safeguarding national security and interests, fulfilling international obligations such as non-proliferation, and reflecting its consistent position of upholding world peace and regional stability. We have also noticed that with the development of industries such as robots and new energy vehicles, the demand for medium and heavy rare earths in the civilian field is continuing to grow. As a responsible major country, China fully considers the reasonable needs and concerns of various countries in the civilian field, reviews applications for export licenses for rare earth-related items in accordance with laws and regulations, has approved a certain number of compliant applications in accordance with the law, and will continue to strengthen the approval of compliant applications. China is willing to further strengthen export control communication and dialogue with relevant countries in this regard to promote convenient and compliant trade.

On the same day, the spokesperson of the Ministry of Commerce answered reporters' questions about the results of Minister Wang Wentao's visit to Europe and said that Minister Wang Wentao further clarified China's export control policy to the European side, emphasizing that the implementation of export controls on rare earths and other items is an internationally accepted practice. China attaches great importance to the concerns of the European side and is willing to establish a green channel for qualified applications to speed up approval, and instruct the working level to maintain timely communication on this.

Rare earths are known as "industrial vitamins" and "the mother of new materials" due to their unique physical and chemical properties, and they occupy an irreplaceable strategic position in the modern industrial system. As my country further regulates rare earth exports and conducts reasonable and effective control, it indicates that China is transforming from a simple "resource exploiter" to a "strategic guardian" and "industry leader".

Source：China Automotive News

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