The White House and automakers are scrambling to adjust to China’s tightening of restrictions on rare earth elements — a growing choke point in President Donald Trump’s trade war.
In what’s emerging as a cautionary tale, carmakers like Ford have found themselves socked by supply disruptions of the elements, which are crucial components in electric vehicles. Others like General Motors that dove early into the rare earths sector have found themselves buffered from the growing trade war.
Rare earth metals are found in all kinds of electronics and are particularly crucial for the heavy-duty motors found in electric vehicles and hybrids. China controls about 90 percent of the world’s mining and processing.
“The rare earths and permanent magnet issue is the No. 1 worry at the moment for electric vehicle makers,” Benchmark Mineral Intelligence CEO Simon Moores said in an interview.
