The automotive supply chain is currently facing new disruptions as tensions between the U.S. and China escalate, impacting the supply of rare-earth elements crucial for vehicle production. After China restricted exports of these materials, which are vital for components in electric vehicles and other technologies, the industry began experiencing inventory problems reminiscent of those seen during the COVID-19 pandemic. Although there has been some easing with the granting of export licenses to U.S. companies, the situation remains precarious amid ongoing trade negotiations and geopolitical tensions.
The whole car industry is in full panic. They are willing to pay any price.
Losing access to any one key component can hold back production. Once production stalls, automakers need to rework their inventories.
#automotive-supply-chain #geopolitical-tensions #rare-earth-elements #electric-vehicles #manufacturing-challenges
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