Finance
Factbox-Auto companies face shortages due to China's rare earth restrictions
Published by Global Banking & Finance Review®
Posted on June 5, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 5, 2025
2 min readLast updated: January 23, 2026
Automakers face production halts due to China's rare earth export restrictions, affecting supply chains and electric vehicle components.
(Reuters) -Automakers and their suppliers are facing shortages due to restrictions on Chinese exports of rare earths, minerals and magnets, an issue that has forced some to shut down production of certain models.
Rare earth magnets are used in motors that run electric vehicles and other car parts such as windows and audio speakers.
These companies have paused production or warned shortages were affecting their supply chains:
PRODUCTION SUSPENDED
** Ford shut down production of its Explorer SUV at its Chicago plant for a week in May because of the rare earths shortage.
** Suzuki Motor suspended production of its flagship Swift subcompact from May 26, citing a shortage of components. It expects a partial restart on June 13, with full resumption after June 16.
Two people familiar with the matter said the suspension was due to China's restrictions. Suzuki declined to comment on the reason.
** Several European auto supplier plants and production lines have been shut down because of a rare earth shortage, Europe's auto supplier association CLEPA said on June 4.
SUPPLY CHAIN CONCERNS
** Indian automaker Bajaj Auto warned that any further delays in securing the supply of rare earth magnets from China could "seriously impact" EV production by July.
** Auto parts maker Bosch said bottlenecks in the supply of rare earths were affecting its suppliers, who had to furnish a lot of detailed information to get export licences.
** BMW said a part of its supplier network was affected by the shortage, but that its own plants were running as normal.
** Maruti Suzuki India's top-selling carmaker, said there was no immediate impact, and that it was in talks with the government on the matter.
** German auto supplier ZF said it sees the effect of a rare earths shortage on some of its suppliers, although it does not procure the raw materials itself.
(Compiled by Anna Chaberska and Amir Orusov in Gdansk, editing by Milla Nissi-Prussak and Jan Harvey)
Ford has shut down production of its Explorer SUV, and Suzuki Motor suspended production of its Swift subcompact. Several European auto supplier plants have also been affected.
Bajaj Auto warned that delays in securing rare earth magnets from China could seriously impact EV production by July. Bosch also noted that bottlenecks were affecting its suppliers.
BMW stated that while a part of its supplier network was affected by the shortage, its own plants were running as normal.
Maruti Suzuki reported no immediate impact from the shortages and is in talks with the government to address the situation.
Auto parts maker Bosch mentioned that its suppliers are required to provide detailed information to obtain export licenses, complicating the supply chain further.
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