China approved only 25% of rare earth export licenses since April 4, leading to Suzuki stopping Swift production and Ford halting Chicago Explorer assembly.
European suppliers are closing down, and rare earth inventories are depleting rapidly, with experts predicting a crisis surpassing the semiconductor shortage impacts by July if no diplomatic solutions are found.
China's new export controls on medium and heavy rare earth materials from April 4, 2025, are causing a global auto production crisis, initially stemming from U.S. trade tensions and now becoming a significant issue.
The rare earth supply chain nightmare in the automotive industry is becoming a reality, as China's export restrictions on vital rare earth materials are severely impacting global production efficiency.