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Global Auto Industry Sounds Alarm Over China’s Rare Earth Export Restrictions. Automakers around the world, including those in Germany and India, are warning of major production risks due to China’s rare earth export restrictions. China halted exports of rare earth magnets and alloys in April, disrupting global supply chains in the auto, aerospace, tech, and defense sectors. The restrictions have sparked concern among major manufacturers who say production delays and outages could occur without swift policy solutions. Germany’s auto lobby warned Tuesday that local production could shut down unless access to rare earth materials resumes quickly. The ban is seen as part of China’s strategy to gain leverage in the ongoing trade conflict with the U.S., where tariffs and counter-tariffs have escalated tensions. Trump administration officials said they are closely monitoring the situation and may raise the issue in upcoming talks with Chinese President Xi Jinping. Shipments of rare earth magnets essential for vehicles, drones, and electronics have stalled at Chinese ports as export licenses remain in limbo. Countries including Japan and India are rushing to arrange emergency meetings with Beijing to restore access and stabilize global manufacturing. Industry leaders, including former U.S. energy official Frank Fannon, urged immediate investment in domestic production capacity to reduce dependence on China. The Alliance for Automotive Innovation warned U.S. leaders that rare earth shortages could halt production of critical car components across all major automakers.
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