A coalition of U.S. automotive parts suppliers has issued a call for immediate intervention in response to China’s recent restrictions on the export of rare earth elements, magnets, and other critical minerals. The group warns that these curbs pose an immediate threat to production across the auto supply chain.
China, which dominates more than 90% of the global rare earth processing industry, implemented tighter export controls in April. The new regulations require companies to obtain licenses from Beijing before shipping certain minerals abroad. These restrictions come amid ongoing trade tensions between the U.S. and China, intensified by tariff measures introduced during the Trump administration.
The Motor & Equipment Manufacturers Association (MEMA) stated that auto part manufacturers are now facing “serious, real-time risks” that could disrupt production and trigger broader economic consequences. The group emphasized that swift and decisive action is essential to protect the automotive supply chain from widespread disruptions.
On May 9, MEMA and the Alliance for Automotive Innovation—representing major automakers including General Motors, Toyota, Volkswagen, Hyundai, and others—submitted a joint letter urging the U.S. government to address the Chinese export limitations. The letter stressed that without consistent access to rare earth materials and magnets, manufacturers cannot produce essential vehicle components such as automatic transmissions, sensors, motors, throttle bodies, alternators, power steering systems, cameras, and lighting systems.
Chinese rare-earth magnet exports reportedly fell by half in April due to the complexity of the new licensing process, which demands extensive documentation from exporters.
Former President Donald Trump accused China via social media of violating a temporary agreement aimed at easing mutual tariffs and restrictions. U.S. automakers are already experiencing the fallout—Ford was forced to suspend production of its Explorer SUV at its Chicago facility for a week in May due to a rare-earth shortage.
