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Jun 7, 2025  |  
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Images Le Monde.fr

The problem took a few weeks to show up on production lines. In early April, China imposed restrictions on the export of certain strategic metals – specifically, heavy rare earths and the magnets made from them. This has created a bottleneck for many industries worldwide that depend on these materials. The automotive sector has already begun to feel the impact.

Japanese automaker Suzuki was forced to suspend production of its Swift model on May 26 due to a shortage of certain components – rare earth derivatives, according to the business daily Nikkei. At the end of May, Ford halted production of its Explorer SUV for a week after a supplier ran out of magnets made from rare earth alloys. Meanwhile, one of India's leading manufacturers, Bajaj, stated that if nothing changes, the shortage caused by China would "heavily impact" its production of electric vehicles in July.

On Wednesday, June 4, the European automotive industry also revealed its exposure to this risk. Without citing specific cases, the European Association of Automotive Suppliers, Clepa, stated that "these restrictions have led to the closure of several production lines and factories in Europe, and the impact will continue to grow in the coming weeks as stocks are depleted." BMW confirmed that some of its suppliers had been affected. "We have shifted to crisis management," said Sylvain Broux, president of the Comité de liaison des industries fournisseurs de l'automobile (CLIFA) in France, while Jean-Louis Pech, president of the Fédération des industries des équipements pour véhicules, described an "economic war in which Europe also has arguments to put forward."

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