On June 6, Japan's Suzuki Motor Corporation announced that some of the company's automobile production lines in Japan had temporarily ceased operations because rare earth material-containing parts from China failed to arrive on time.
The company statement pointed out that the shortage of parts is mainly used in automotive electronic systems and engine components, which directly affects production plans.
A visitor at the Suzuki Motor Corporation booth at the Japan Mobility Expo.
Many car companies and parts companies have been affected
Suzuki is not the only automaker affected by the rare earth supply. In May, the Automotive Innovation Alliance and the Motor Parts Manufacturers Association (MEMA), which represent mainstream automakers such as GM, Toyota, Volkswagen, and Hyundai, sent a joint letter to the Trump administration, warning that without stable access to rare earth elements and magnets, auto suppliers will not be able to produce key auto parts including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lighting equipment, power steering systems, and cameras. In severe cases, they may be forced to reduce production or even shut down vehicle assembly lines, mentioning the risk of suspension of production at U.S. auto factories.
Ford Motor Co. said earlier that it had suspended production of its Explorer SUV at its Chicago plant for a week in May due to a shortage of rare earths. The main reason was that a shortage of rare earth magnets affected the supply of motors.
In early June, BMW said that although its factories are still operating normally, some of its supplier networks have been affected by the shortage of rare earths. Bosch, an auto parts giant, said that the rare earth supply bottleneck is affecting its suppliers, and suppliers must now provide a lot of detailed information to obtain export licenses. Another auto parts giant, ZF, said that although it does not directly purchase raw materials, the shortage of rare earths is affecting the delivery of some of its suppliers.
The European Association of Automotive Suppliers (CLEPA) revealed that due to the shortage of rare earths, many European automotive suppliers' factories and production lines have been forced to close. Tesla's humanoid robot "Optimus Prime" also faces difficulties in mass production due to its tight rare earth inventory.
Rare earths are essential to the automotive industry chain
"Rare earth" does not literally mean "rare soil", but a general term for 17 metal elements in the periodic table. Rare earth is widely used in automotive electronic components, optoelectronic materials, battery materials, permanent magnet materials, lightweight vehicles, and even glass ceramics.
In traditional powered vehicles, rare earth materials such as cerium oxide, cerium-based catalysts, and lanthanum-based catalysts are used extensively in fuel injection systems and post-treatment three-way catalytic devices; neodymium iron boron, samarium cobalt and other materials are used extensively in new energy vehicle motors, and dysprosium oxide materials are used in electronic control systems. In power batteries, materials such as lanthanum (La) and cerium (Ce) are used to improve and increase the energy density of lithium-ion batteries; terbium-based materials are also widely used in sensors related to assisted driving; in the field of lightweighting, alloys of elements such as neodymium and yttrium are used to improve material strength and reduce weight.
According to data from the industry association, each pure electric vehicle consumes 5-10kg of NdFeB, and each plug-in hybrid vehicle consumes 2-3kg.
my country occupies an important position in the entire industrial chain of rare earth mining, refining, processing and application. Rare earth resources are widely distributed but unevenly distributed around the world. my country is the country with the richest rare earth resources in the world, with rare earth reserves of about 44 million tons (rare earth oxides), accounting for 40% of the world's total reserves. my country is the world's largest rare earth producer. In 2023, my country's rare earth production reached 210,000 tons, accounting for nearly 70% of the world; smelting and separation capacity accounted for 92.3% of the world, and technology is leading the world.
In 2011, the State Council issued the "Several Opinions on Promoting the Sustainable and Healthy Development of the Rare Earth Industry", which clarified the strategic position of rare earth resources. In 2024, the Ministry of Industry and Information Technology drafted the "Management Measures for the Total Control of Rare Earth Mining and Smelting and Separation", which included imported rare earth mineral products in quota management and further concentrated the supply structure. At the same time, the export of 18 key technologies was restricted through the "Catalogue of Prohibited and Restricted Export Technologies". In February 2025, the Ministry of Industry and Information Technology publicly solicited opinions on the "Management Measures for the Total Control of Rare Earth Mining and Smelting and Separation (Interim) (Draft for Public Comments)" and other documents to clarify the total control management of rare earth mining and smelting and separation.
Reasonable and effective regulation maintains the stability of the industrial chain
On April 4, the Ministry of Commerce and the General Administration of Customs jointly issued an announcement to implement export controls on some medium and heavy rare earth-related items. Recently, relevant Chinese departments have made intensive statements on rare earth exports.
On May 28, China Daily reported that the Ministry of Commerce recently held a symposium for China-Europe semiconductor upstream and downstream companies to publicize the rare earth export control policy, strengthen communication with China and European chip companies on rare earth export controls in order to maintain the stability of the global industrial chain.
On June 5, when answering a question from a Japanese NHK reporter about Suzuki Motor's suspension of production of its main small cars in Japan due to China's rare earth export control, Foreign Ministry Spokesperson Lin Jian said that China's export control measures are in line with international practices, are non-discriminatory, and are not targeted at specific countries. Regarding the specific questions you mentioned, it is recommended to ask the relevant Chinese authorities.
On June 7, the spokesperson of the Ministry of Commerce answered questions from reporters about the export control measures on medium and heavy rare earths and said that rare earth-related items have dual-use attributes, and the implementation of export control on them is in line with international practices. China implements export control on rare earth-related items in accordance with the law, with the aim of better safeguarding national security and interests, fulfilling international obligations such as non-proliferation, and reflecting its consistent position of upholding world peace and regional stability. We have also noticed that with the development of industries such as robots and new energy vehicles, the demand for medium and heavy rare earths in the civilian field is continuing to grow. As a responsible major country, China fully considers the reasonable needs and concerns of various countries in the civilian field, reviews the export license applications for rare earth-related items in accordance with laws and regulations, has approved a certain number of compliance applications in accordance with the law, and will continue to strengthen the approval of compliance applications. China is willing to further strengthen communication and dialogue on export control with relevant countries in this regard to promote convenient and compliant trade.
On the same day, the spokesperson of the Ministry of Commerce responded to reporters' questions about the results of Minister Wang Wentao's visit to Europe and said that Minister Wang Wentao further clarified China's export control policy to the EU, emphasizing that imposing export controls on rare earths and other items is an international practice. China attaches great importance to EU concerns and is willing to establish a green channel for qualified applications to speed up approval, and has instructed the working level to maintain timely communication on this.
Rare earths are known as "industrial vitamins" and "the mother of new materials" due to their unique physical and chemical properties, and they occupy an irreplaceable strategic position in the modern industrial system. As my country further regulates rare earth exports and conducts reasonable and effective control, it indicates that China is transforming from a simple "resource exploiter" to a "strategic guardian" and "industry leader".