Ford Motor Co. is still scrambling to secure rare-earth magnets essential for its vehicles, an executive told the Wall Street Journal, saying supply remains “hand-to-mouth” despite a U.S.–China agreement earlier this month that was meant to ease export controls. The shortage forced the automaker to halt production at a Chicago plant for a week in May and continues to threaten additional disruptions, according to Chief Executive Officer Jim Farley. Ford’s difficulties mirror a wider industry problem. Western manufacturers report waiting weeks for Chinese authorities to approve shipments and receiving only enough magnets to keep factories running day-to-day. Official trade data show China’s exports of rare-earth magnets fell 76% year-on-year in May to 1,238 tons, with shipments to the United States plunging 92% to just 46 tons. At the same time, Beijing has tightened control over its rare-earth sector, ordering companies to hand over detailed lists of employees with technical expertise and, in some cases, to confiscate their passports, the Journal reported. Officials say the measures aim to prevent trade-secret leaks as global demand for the materials grows. The continued bottlenecks raise the prospect of renewed trade friction only weeks after negotiators announced the export-control détente. Automakers and other technology producers remain heavily dependent on China, which supplies roughly 90% of the world’s processed rare-earths, and warn that prolonged shortages could ripple through production schedules and costs.
"Firms are waiting weeks as Chinese authorities scrutinize their applications—only to be rejected in some cases. And applications for raw rare earths, which are used to make magnets, are rarely granted." https://t.co/2dzceQdnZi
Western companies are struggling to secure approvals for rare-earth imports from Chinese authorities, despite the U.S.-China deal, reports @JonathanEmont https://t.co/TxGvMyxQir
China has told companies in its rare-earth industry to give the government lists of employees with technical expertise, aiming to ensure they don’t divulge trade secrets to foreigners https://t.co/t0T8asnwyX via @WSJ