Auto -industry companies have been looking for alternative sources of rare ground minerals for the magnet, since China’s decision in April to limit the export of its monopolistic supplies.
TIT was strangled by Tat between the Chinese and the United States caused by the tariff warfare. Beijing controls about 90 % of the global offer of these strategic minerals, which are necessary for electric car engines to work at high speeds. If the manufacturers do not receive rare ground minerals, they will not be able to make the magnet necessary to operate the electric motors. Moreover, the magnet is also necessary in the windshield spaces, headlights, braking systems, steering wheels and seat engines.
To confront this existential threat, car makers are very searching for alternatives to the current situation. If the magnet exports are restricted, they can instead install the magnet in the engines in China and avoid all the uproar. After all, there are well -known Chinese magnet producers working with them.
Another alternative is to store mineral stocks. The Korean company Hyundai Motor recently reassured its investors by saying that the company has a stock that can last for a year. European colleagues have tried another path: finding two suppliers outside China. It is reported that the German auto company, Mercedes -Benz, has recently approached the British company Rainbow Rare Earths. The company’s long -term goal is to secure future production from the South African mine in Rainbow, which is expected to start production in 2027. Porsche also requested the German magnet maker to increase its production.
If the suppliers are not able to comply, look for a way to get rid of the need for rare Earth’s minerals. This is the promise made by Conifer, which is Silicon Valley test engines that use the magnet on the basis of iron. However, this new technology is not yet ready for mass production.
In another sector, Apple finds itself in connecting. Rare Earth magnet makes mobile phones shake. The company cannot rely on the bureaucracy of the slow Chinese license for magnet exports. Since April, only a quarter of the licensing applications have succeeded. To face the risk of disrupting the supply chain, Apple has made a partnership with MP materials, which produce the magnet from recycled materials. Apple decided to invest $ 500 million to ensure a fixed supply of magnet, starting in 2027.
