Automakers look for workaround to China’s hold on rare-earth magnets, WSJ says

Four major automakers are racing to discover workarounds to China’s hold on rare-earth magnets, which they fear could force them to shut down on some vehicle production within weeks, Sean McLain and Ryan Felton of The Wall Street Journal reports. Several traditional and EV makers are considering shifting some auto-parts manufacturing to China to avoid factory shutdowns, people familiar with the situation said. Ideas include producing electric motors in Chinese factors or shipping made-in-America motors to China to have magnets installed. China recently began requiring companies to apply for permission to export magnets made with rare-earth metals, including dysprosium and terbium. China controls roughly 90% of the world’s supply of these elements. The Fly notes that companies involved in the development and mining of rare earth minerals include: Nova Minerals (NVA), Ioneer (IONR), Lynas Rare Earths (LYSCF), MP Materials (MP), Energy Fuels (UUUU), NioCorp (NB) and VanEck Vectors Rare Earth/Strategic Metals ETF (REMX). Publicly traded companies in the space include Ford (F), General Motors (GM), Honda (HMC), Mercedes-Benz (MBGYY), Nissan (NSANY), Stellantis (STLA), Tesla (TSLA), Toyota (TM) and Volkswagen (VWAGY).