How can China close the auto factories in the world

The dominance of China’s global supply chain begins to damage the cars.

On April 4, the country cut the exports of a degree “heavy rare land elements” and sent the Global Auto industry to panic.

There are rare lands A class of 17 elements All types have become invaluable – everything from fighter jets and submarines, smartphones and devices. You can Find them in sports equipment as tennis missiles and baseball bats.

Of course, it is important for modern cars. Gas burning cars use the vehicle to forward pollution through the catalytic converter. Electric vehicles use them in engines and batteries.

“Rare land is really important and not only for electric vehicles,” said Gracelin Baskaran, director of critical minerals in the center of strategic and international research. “They are in different parts of your seat belt, the steering wheel, in different parts of your electrical components. You do not intend to produce a car without rare lands.”

Rare lands are divided into further categories based on the weight of the atomic. Light is easier to source the rare lands. China is the middle and heavy ones that are completely monopolized. China manages about 70% of the world’s rare land mines. But it is really processed where it is dominated.

The name “Rare Earth Elements” is a little wrong – the elements themselves are not uncommon in nature. What makes them “rare” is a complex and difficult process that is entered and separated from each other. China controls the world’s rare land processing and 90% of There is a general monopoly in the processing of heavy rare lands.

Since at least 2023, China has reportedly reported BASKARAN since captured several main critical minerals.

Again, the April 4 export restrictions shocked the car world.

“Nowhere,” Dan said Dan, Administrative Director at AlixPartners. “No one had time to react to it. I want to say that the materials in the pipeline came out in a few weeks.”

European cars Close the factories. Ford was forced to empty production From the famous Explorer SUV.

This month, China began to allow some of the companies that provide parts for some cars. And this week the Trump management said Has reached an agreement to accelerate rare location and magnetic transportation to the United States

It is not clear how continuous these deals will be.

“We don’t get out of the woods yet,” Bashkaran said. “There are many variability in the US-Chinese relations between tariffs and mineral restrictions. We saw China’s restrictions in two years. Rare places are just the newest.”

If China cuts the input again, there are longer term solutions: for example, develop, develop, develop, develop, develop other sources and updates. This crisis even reduces dependence on China in the industry.

However, these rare land crisis are the most end of a number of supply violations in the past few years. Hearsch said it would get worse.

“Today is rare lands,” he said. “But it can be tomorrow and maybe something else we don’t think, maybe everything will be precious and suddenly.”

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