Global automakers are racing to secure rare earths as looming Chinese export controls threaten parts shortages and plant closures. China controls up to 70% of global rare earths mining and 90% of production. Automakers are exploring alternatives like recycling rare earths from old cars and developing rare earth-free motors to reduce reliance. China’s dominance poses a significant challenge for the industry, with fears of a rare earth bottleneck and supply shortages.

Efforts to counter Chinese dominance include a critical minerals agreement between President Trump and Australian Prime Minister Anthony. While there are rare earth deposits in countries like Sweden, China still controls refining capacity, making alternative sources limited. Automakers face additional challenges such as U.S. tariffs, intellectual property disputes, and concerns over parts supplies for electric vehicles. Experts warn that China’s ability to undercut prices poses a risk to investments in rare earth-free motors. China is expected to continue exerting power over rare earth supplies, with export controls likely to persist.

Automakers like General Motors and BMW are developing rare earth-free motors to reduce dependence. Some companies have successfully reduced rare earth content in motors already in production. However, efforts to develop new rare earth mines and processing plants outside China face challenges, as Beijing can undercut prices. Despite these efforts, the U.S. government is more focused on the threat than Europe. The industry faces uncertainty as it navigates the complex supply chain and attempts to reduce reliance on Chinese-controlled rare earths.

Read more at Yahoo Finance: Concerned carmakers race to beat China’s rare earths deadline